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To: The Ox who wrote (12448)4/26/2012 5:28:02 PM
From: Return to Sender3 Recommendations  Read Replies (3) | Respond to of 13403
 
OT: Well TO, Robert, et al. Why not post some of the discussion over on this thread as some have already been doing to keep this thread more trade related rather than discussion related.

Subject 55649

The majority of discussion can be done there or on another thread.

Best yet if the thread stayed mainly on point here by discussing stocks and trades with as much information as possible it would be great for all. Let me give a hypothetical that I think would work on either thread.

I have been watching ACI (Arch Coal). Coal prices like natural gas prices were hammered this year as global warming, or whatever, made for a very warm winter. Not much in the way of heating needs. Now ACI the stock resides below previous support in the low 9.70 area. On the chart I think this stock would be a very good risk to reward should it break down further to below 7.



The stock currently pays a 4.6% dividend (dividends are never safe), has a book value of over 16 and there has been insider buying at prices higher than where ACI resides today:

finance.yahoo.com

finance.yahoo.com

This is a beat up stock. The company makes its money from the burning of the foulest stuff possible as far as I am concerned but the world does not run on clean energy yet. ACI will one day sell much higher than it does now.

Question is where is it worth buying. I say below 7. At that point you can buy and hold or day trade with very limited risk based on current knowledge of the stock and its industry.

This is the kind of post I would like to see here on on the other thread as it really says what I am thinking and how someone could profit. It also shows a chart and links to fundamental data.

I do not own any ACI at this time.

RtS