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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (36981)	3/16/2010 12:07:47 PM
From: Paul Senior	Read Replies (3) \| Respond to of 78751

CNX. That looks like a good idea. I'll hold my D for a while, but start a tracking position in CNX. Stock drops further, I'll likely add. WSJ has a basically negative article on the acquisition. Although the price paid was good - or at least on some measures (per acre costs, for example) better than recent acquirers have paid, the issue is that CNX changes from being a coal company to being a conglomerate (coal and gas). And conglomerates are valued in the market at lower p/e's than are focused companies (i.e. coal producers). On the CNX website, CNX seems to view themselves as an energy producer, both coal and gas. I've no issue with that. Stock price is beat down enough to where it seems it might be a buy. Management looks like it can deliver: Website says Fortune has it as one of it's "most admired" corporations. A positive for a coal company -g-. Also I see very good stock performance when looking over a long time frame: finance.yahoo.com Miniscule dividend yes, so I'll go for a promise of capital gain, and put this one in my taxable account.