Just kidding but the opportunities in the oil patch may be weak until we disperse that 90 million bbls of oil from the various strategic reserves. Until then we need to concentrate on something other than oil stocks.
Fortunately coal stocks are finding plenty of favor and are selling for obscene PE ratios relative to their coal reserves.
We are already playing BTU and MEE, which leaves Fording Coal as the next target. With the price of natural gas rising power companies will have to burn more coal to save money and keep rates down.
I am not adding a bunch of stocks to the watch list until we exit some of our existing plays.
Current Watch List
FDG - $131.90 Fording Canadian Coal Trust
** Breakdown Target $125.00 **
Fording Canadian Coal Trust (the Trust) is an open-ended mutual fund trust. The Trust does not carry on any active business. Distributions to Unitholders are facilitated by the Trust's investment in Fording Inc. The Trust holds all of the issued and outstanding Fording Common Shares, Fording Preferred Shares and Fording Subordinated Notes and does not own any other material assets. Through Fording Inc., the Trust holds a 62%-interest, declining to 61%, effective April 1, 2005, and to 60%, effective April 1, 2006, in the Elk Valley Coal Partnership and a 100%-interest in NYCO. The Trust uses the cash it receives from its investment in Fording Inc. to make quarterly cash distributions to its Unitholders. During the year ended December 31, 2004, the Elk Valley Coal Partnership accounted for 96% of the Trust's revenues and NYCO accounted for the balance.