Updated: 8/17/2012 5:30 PM ET|
Consol Energy among 10 hot stocks
The nation's largest underground coal mining company appears on an MSN Money list of stocks to watch this week.
The Appalachian coal industry has been in a depression, although some analysts think a modest recovery may be around the corner.
Analyst Lucas Pipes at boutique investment bank Brean Murray, Carret expects some idled domestic coal production to come back online next year, with the gains limited by large stockpiles already at electric utilities.
"Overall, we believe that the tone on the domestic thermal coal side will be cautiously optimistic that the worst may have passed for the industry," Pipes wrote in a July 19 research note.
First to benefit from a recovery will be low-cost producers with strong balance sheets such as Consol Energy (CNX), Pipes added.
Coal inventories began to build during the warm winter months. The oversupply has persisted as power producers take advantage of low prices on natural gas. Domestic coal production is projected to decline by 100 million tons this year, as Consol and others are forced to idle some mines.
Consol holds 4.5 billion tons of proved and probable coal reserves, with nearly two-thirds of that situated in central and northern Appalachia. The company delivers coal to electric utilities and steel mills via its own railroad cars, tugs and barges. It also explores for and produces natural gas.
The Canonsburg, Pa., company appears on a daily ranking created using StockScouter, an MSN Money tool that identifies stocks with strong growth prospects in the near term. All stocks with Scouter ratings of 8, 9 or 10 are considered for the list, which is then shortened to exclude stocks with a trading volume below 50,000 shares a day. The remaining stocks are ranked on the basis of market capitalization, sector membership and whether they are growth or value stocks.
As bleak as the picture has been domestically, the global market for coal is bright and could be a catalyst for a recovery among U.S. exporters.
The United States is already a key exporter of coal, shipping out 38 million tons a year, mainly for power generation. And that total could rise. The International Energy Agency estimates that global coal demand will grow by 600,000 tons a day over the next five years, with most of the demand coming from China and India.
China depends on coal for about 70% of its energy needs. The world's most-populous nation is building 16 large coal-fired power plants through 2016 as part of its five-year economic plan, the IEA reports.
The U.S. coal industry is making the transition toward an export-led future as it becomes increasingly apparent that the sun is setting on coal in the United States.
The emergence of plentiful and cheaper natural gas is one nail in coal's coffin, and growing concerns about Earth's climate are also helping usher in a new energy era in the United States.
The coal industry has sought to address concerns about global warming with "clean-coal" technology. But cheap gas poses a threat to continued federal funding of coal industry efforts to capture and store carbon emissions underground, a technology seen as vital to converting coal into liquid fuels without releasing significant amounts of carbon dioxide into the atmosphere.
Further, extreme weather incidents, like the drought that has settled over much of the Midwest this summer, are putting heat on policymakers to find ways to limit emissions of carbon dioxide, a contributing factor in climate change.
Global warming projections give urgency to efforts to answer the question of who owns the emissions from burning fossil fuels. At present, no one does. But as the world moves toward a system of tracking emissions, it will become feasible to assign responsibility for atmospheric carbon dioxide -- to the company that mined the fossil fuel, to the power plant that burned it or possibly to the consumers who bought the goods and services made with electricity generated by the combustion.
Coal is already the single-largest source of electricity generation globally, according to the IEA, which bases its projection of surging demand over the next five years on the rapid increase in power generation among emerging economies.
That surge, the IEA says, "serves as a reminder of the significant challenges facing efforts to transform the global energy system to one that is sustainable, secure and low-carbon."
Of the 19 analysts who cover Consol Energy, 13 have a "strong buy" rating on the stock, one rates it a "buy," four have a "hold" recommendation and one rates the stock a "moderate sell."
|StockScouter top 10 for Aug. 10|
|Company||Sector||Dividend yield||Forward P/E||Scouter score|
|American Electric Power (AEP)||Utilities||4.4%||13.7||9|
|D.R. Horton (DHI)||Homebuilding||0.8%||21.2||9|
|Chevron (CVX)||Oil and gas||3.2%||9.1||9|
|Canadian Natural Resources (CNQ)||Oil and gas||1.3%||11.6||8|
|Consol Energy (CNX)||Coal and gas||1.6%||16.4||8|
|Valero Energy (VLO)||Oil refining||2.4%||6.7||8|
|Southwestern Energy (SWN)||Oil and gas||N/A||21.0||8|
|American Eagle Outfitters (AEO)||Apparel retailing||2.1%||14.2||10|
StockScouter beats the market
At MSN Money, we think the StockScouter rating system is about as good as it gets when you're trying to decide where to invest. StockScouter looks for stocks whose business fundamentals, price behavior, valuation and stock-ownership characteristics appear to predict a rising price in the future, based on how those factors have influenced stock prices in the past.
The system assigns each stock an expected six-month return and balances that return against the stock's expected volatility. Scouter rates stocks on a scale of 1 to 10, and ratings can change daily. Ratings and data in the chart above were current as of this article's publication date.
In addition to the daily top 10 list described above, StockScouter is used by investment research firm Verus Analytics (previously known as the quantitative business unit of Gradient Analytics) to generate a monthly benchmark portfolio of stocks that, refreshed monthly, has outperformed the market since its inception in August 2001.
An investor who began in 2001 by investing in each of the benchmark portfolio's top 10 stocks at the start of the month, selling them at the end of the month and then starting fresh with a new group of 10 stocks, would have generated returns, before trading costs and taxes, of 846% through July 31, 2012.
Writer Jon Markman, at the time a columnist for MSN Money, collaborated with company researchers on the tool. In this column, Markman suggested rolling over the top 10 stocks every six months to hold down trading costs, a strategy that might be a better fit for most investors; that would yield different results, which would vary based on your starting point.
|Performance through July 31|
|Full 50 position portfolio|
|Index||1 month||3 month||6 month||12 month||From inception||Average annual return|
|Top 10 portfolio|
|Index||1 month||3 month||6 month||12 month||From inception||Average annual return|
|Portfolio inception: August 2001|
VIDEO ON MSN MONEY
If MSN is telling you about this weeks 10 hot stocks and where to invest.....It's already too late...Stay away!
Doing some "brainstorming" this morning, I realized the "sin tax" has got to stop; for the sake of the "working class." The average working Joe, has a $1000.00 dollar mortgage each month. He has his "scoobie snack" of two packs of cigarettes a day, equaling in the sin tax of $600.00 dollars a month. He drive to his local job, on one fill-up of gasoline a week or $400.00 dollars a month. Both are "treats" to him, with no tax write off, like a small business owner. This equals for the average Joe, a $1000.00 dollars in expenses with no recouping of losses suffered. No wonder there are so many foreclosures, his expenses, minus expensive groceries, equal the mortgage payment, because of the sin tax. Isn't there anyway, with the average working stiff can be recompensated with "food stamps" at least, for him and his family? After all, a bag of potato chips is $5.00 bucks and a package of sirloin tips is $20.00 bucks.
There are other ways to compensate Joe for his sodomite habits (shame on you Joe? ha!). One is to add lithograph series pictures to his pack of cigarettes, that are only printed paper, but collector's value of $10.00 dollars a piece. Another is Gas Stations, putting out "plate settings" and getting one set per fill-up. Thee other is when grocery shopping for food markets to give away encyclopedias, with a certain purchase price, like for $50.00 dollars worth of groceries equals one book. After all the President wants us to all go to college one day. Yes folks; even Joe "the working class hero." Hey Joe. Would you one day like to do something, like climb Mt. Everest? If he isn't rich, he's going to have problems! Ugh.
Dear Philip Morris:
Thee old "Targon" smoker's mouthwash (that was yellow) would remove the plaque from your teeth, then if you swallowed it, instead of spitting it out, would be absorbed by the stomach, enter one's bloodstream and remove the plaque from your veins and arteries. Then it would be expelled through the lungs and dissolve the tar in one's lungs. Fact! Then Targon changed the recipe. On another note, if you take a breathalyzer, with just tobacco in your system, you will blow a .004 % alcohol level from the evaporated tar in your bloodstream. A natural decongestant, that also would alter a OUI test. Fact again. Thank you and your welcome!
Really! These comments showing some 'modicum' of intelligence. It is very simple. There is no volume other than same 'profiteers' in 'churning' accounts. 'Divident" might be more appropriate than 'dividend'. It is a con and 'holding' companies do this well for what is called better than anything else 'private investors controlled positions'. Actually, the 'owners' are 'insider trading' and have a few 'dupes' in management positions doing the con for them. Normally, an accountant that files the papers and is compensated well do so .... and, for every 'holding company' their is a parent company pulling the strings.. Zurich is a good example.
Of course if you have lots of money to invest, these are probably good stocks. But I prefer the pennies! Sure there is a lot more risk....but there is also tons more reward! So balance the portfolio. Two I like.
QOIL - Just declared a dividend
NWMT - "The Barclay Group" just purchased 51% controlling interest!
As always with any stock, do your research and play with your head, not over it!
Of course the DEmocrats promise to build solar and windmills which will drive our energy costs up by a factor of four. Most morons say so what. Well, if you are paying a high energy bill you are not buying other goods and therefore you kill the jobs that would produce those goods. Sounds great. And if you are a company having to pay those rates you can't compete with International firms not paying those high rates. So you scale back and kill more jobs. OR you just move the whole company overseas. What a great plan. Of course Democrats with the Democrat mental disorder just say "no it does nto work that way becaue I don't want reality and I don't want it to work that way, problem solved" . The problem is it does work that way!!!!
14 thumbs down on this post. Hmm? No rebutal of course, because the facts of the post are indisputible. This is the Democrat mental discorder. State a conclusion such as 'green energy is great", don't offer one supporting fact and rediculal all who disagree. WE are so screwed with a nation populate by atleast 50% of such people. WOW! I mean what ? High energy costs make people buy more energy and results in them having more money to spend on other things? Really? And high energy costs make companies expand business here at home? REally? STupid , just stupid people.
Don't want to get into a rant with marxist trolls here, but virtually every business in America is a corporation, LLC, sub-s, whatever. They generate wealth, taxes, and jobs and have made America the greatest country on earth. Corporations are corporations, if they are so rich and greedy, why don't you buy a share of stock and suck up the gravy??
Worried about Apple, down 71 points in last two weeks, at 50 day MA, bad-looking charts. Still, the 4/27/12 $575 weekly call option yields $21.25 (pre-market), 3.7% cash premium in 4 days, that covers a lot of hedging for short-term trading. Market just opened, not good, but the fact that someone out there is willing to pay you 21 bucks for the priviledge of buying your AAPL for $575 a share this coming Friday with the stock now in free fall speaks a lot about the relative strength.
All trading is short-term anymore, may be best to cash out and wait this out, I have never had any luck catching a falling knife.
Copyright © 2013 Microsoft. All rights reserved.
Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.
[BRIEFING.COM] Stocks entered the weekend on a mixed note as the S&P 500 shed 0.1% while the Dow ended with a gain of 0.1%.
The major averages began the day on a lower note as nine of ten sectors saw losses of more than 0.5%.
The consumer staples sector was the lone exception as the group spent the entire day in positive territory thanks to the relative strength of Dow component Procter & Gamble (PG 81.89, +3.19). The second-largest staple stock advanced ... More
More Market News
|There’s a problem getting this information right now. Please try again later.|