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Coal Is the New Black Gold

I put Arch Coal on the watch list without a trigger price. I would like to buy it cheaper and with natural gas prices moving lower we may get the chance. I will send an email update when I think it is safe to enter. We may miss the breakout if it occurs but the gas glut is a factor to watch. Better safe than sorry.

Check your email during the week for updates on ACI and any other stocks that become targets.

Jim Brown
 

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New Watch List Entries
ACI
$47.43
Arch Coal Inc.

Current Watch List

ACI - $47.43 - Arch Coal Inc

Arch Coal, Inc. operates as a coal producer in the United States. The Company's primary business is the production of steam and metallurgical coal from surface and underground mines throughout the United States, for sale to utility, industrial and export markets. Its mines are located in southern West Virginia, eastern Kentucky, Virginia, southern Wyoming, Colorado and Utah. As of December 31, 2005, it operated 21 mines, and controlled approximately 3.1 billion tons of proven and probable coal reserves. During the year ended December 31, 2005, the Company sold approximately 140.2 million tons of coal. The Company has three business segments, which are based on the low-sulfur coal producing regions in the United States, in which the Company has operations. These segments are the Central Appalachia region, the Powder River Basin and the Western Bituminous region. On December 31, 2005, the Company sold its 100% interest in Hobet Mining, Inc., Apogee Coal Company and Catenary Coal Company.


ACI appears to be coiling for a breakout over resistance at $48-$48.50. I would like to buy another dip but with natural gas prices falling it will pressure coal stocks. Rather than put a trigger on ACI I am going to send an update when I think it is safe to enter. I plan on using the call option below. ACI has LEAPS but the 2008 strikes are very expensive. January 2007 is still seven months away and gives us plenty of time.


No trigger: Wait for newsletter confirmation to enter.

Buy Jan $55 Call ACI-AK currently $4.10
 

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