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Strategies & Market Trends : Value Investing
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To: Dennis 3 who wrote (46176)1/12/2012 1:44:55 PM
From: E_K_S  Read Replies (1) of 78984
 
Hi Dennis 3

Peabody Energy Corporation Comm (BTU) -NYSE - Graham No $39.05. (Current Price $37.00)
CONSOL Energy Inc. Common Stock (CNX) -NYSE
Penn Virginia Resource Partners (NYSE: PVR)
finance.yahoo.com

BTU is a pure coal play. It is 5% undervalued when measured by the fair value GN. I own CNX which is 50% coal and 50% NG. It's Graham No. is only $28.44 so according to this measure, CNX is priced over it's fair value. CNX does pay a higher dividend but w/ NG prices near an all time low, earnings depressed too.

My other coal holding is Penn Virginia Resource Partners (NYSE: PVR). They are formed a a MLP and manage royalty coal trusts. They pay a much larger dividend payout yielding around 7%. Small to little capital gain potential. I am looking to sell 50% of my holdings at or near $28 as I believe I can redeploy the proceeds elsewhere w/ better capital gain potential.

Of the three, BTU has a better GN and better capital gain potential. I am more positive on Oil and even NG than coal long term. Many of the Canadian Sands companies are quite undervalued (ie. SU & COSWF) too.

Of the group, coal companies have probably seen the biggest sell off. CNX was trading as high as $55 last year and is now trading in the $36.00 area. PVR has not had the sell off like BTU or CNX. It's only off 5% from it's high.

EKS
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