A few years ago I mentioned on BccList.com that investors should consider buying Ford stock. If you heeded to my advice, please paypal 10% of your earnings so that I can retire.
I’m back. This time I’m speculating – and it’s solely my point of view – that shorting coal stocks is a good idea. Specifically, a few of the largest coal manufacturer stocks such as ARLP, ANR, ACI, etc. Why?
Obama backed offshore drilling earlier today – link – in order to force republicans to vote for an upcoming climate bill. Why force? There’s no republican that wants to be known as the Senator who didn’t vote for offshore drilling. The climate bill’s sole intention will be to reduce the United States’ carbon emissions. The largest source of carbon emissions = coal companies. With a few republican votes, a bill will pass. Great politicking by the administration.
As of 3/31/2010, Arch Coal (ACI) is trading at $23 a share, Alpha Natural Resources (ANR) is trading at $50 a share, and Alliance Resource Partner (ARLP) is trading at $42 a share. I expect at least a 10% drop from these prices within a year AFTER the climate bill passing. You can paypal me (eventually after the bill passes) at firstname.lastname@example.org – hahaha.