Coal mining is a tricky business right now. Demand for coal has been decreasing, and could continue on that downtrend.

3 Coal Stocks That Are as Good as Gold Thanks to the Election | InvestorPlace

However, China still needs a lot of coal, and more relaxed restrictions under President Donald Trump could be the boost the industry needs. In his first speech to Congress, he said, "We are going to stop the regulations that threaten the future and livelihood of our great coal miners. So many coal companies have gone out of business that the remaining ones have longevity to their credit. Can President Trump Make Coal Stocks Great Again? We have chosen four that look like they can make money going forward and give investors an opportunity to profit in this sector.

All figures are current as of June 14, The stock of Cloud Peak Energy Inc. CLD had been rising steadily since the beginning of However, has seen a decline. This has occurred on low volume, so the move could be a price consolidation that may become a base. A steep drop on February 23 was the result of the company offering new common shares. This dilutes the price of existing shares.

Investors will be watching to see if the stock remains resilient by breaking out of its base. While you are watching the base form, study the cup with handle pattern so you can be prepared in the event of a breakout. CLD is focused primarily on the United States Powder River Basin but also has operations in other regions.

Coal Stocks Get a Bump as Trump Signs Climate Executive Order - TheStreet

Earnings growth is expected to slow for the next three years, so this would be a contrarian play—if you think deregulation will turn the coal industry around, the recent declines in the stock could make it look like a bargain to you. Cloud Peak owns or controls 1.

It is developing projects in Wyoming and south Montana, and owns surface mines in both of those states. As of this writing, Cloud Peak can meet its short-term debt payments because of its cash and other assets. However, its long-term debt is greater than its cash and assets.

Revenues dropped as of the March 31, quarterly report.

Operating income turned negative. Investing in this stock would be done on the basis of expecting a resurgence in coal prices and further easing of regulations on the coal industry.

It does not pay a dividend at this time. BHP Billiton BHP is a major miner of copper, iron, and coal. It also works in the areas of silver, lead, zinc, uranium and gold. The advantage with this stock is that it does not rely exclusively on coal, so it is less likely to suffer if the coal market takes a downturn.

This is not a pure coal play, but it does offer the protection of a diversified product portfolio. BHP made a steady climb throughout , but it appears to have been forming a base since February of The day moving average is crossing below the day moving average. This indicates the stock may have further to drop before investors should buy in. Revenues, gross profit and operating income have been dropping for the past three years.

On April 5 th , the company declared force majeure for its Australian operations, meaning it could not fulfill contracts because the railways were inoperable due to a tropical cyclone. However, the company has extensive holdings across Australia, the Gulf of Mexico and Trinidad and Tobago. The likelihood of any single event causing the company serious harm is very low. The dividend is 3.

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Investors who are interested in this stock may be attracted by the dividend and the possibility that the stock is forming a base which could be the foundation for a future breakout. Rio Tinto RIO is another company that mines other mineral resources besides coal. Its coal mines serve both the thermal heating and metallurgical steel-making industries.

Like BHP, the diversity of products helps protect RIO from fluctuations in coal prices. The company explores worldwide for minerals and metals. It also processes aluminum, copper, diamonds gold, iron and uranium. The stock price began dropping since mid-February of The short-term moving average moving downward toward the long-term average, indicating that this stock may have more declines in the near future.

This is one to watch to see if it is forming a base that could result in a breakout later. For investors seeking longevity, it is important to know that Rio Tinto dates to Though it is based in London, the company has announced a major project in Western Australia that will create more than 1, jobs.

In addition, it has a Silvergrass iron ore mine that has seen increasing activity in The company has disputed the amount. South32 Limited SOUHY was a part of BHP but now operates independently.

South32 was previously called BHP Coal Holdings. The company mines other products besides coal, but it does provide coal to both the thermal coal and metallurgical coal industries. The stock began a steady uptrend in mid, and has begun a sideways price consolidation in The action seems to be orderly and sustainable, as the stock appears to be forming a base.

This company operates in Australia, South America, and South Africa. It produces aluminum, coal, manganese, silver lead and zinc. Average daily volume is only 62,, so this stock may not be as liquid as larger stocks.

No one is excited about coal, so this is a sector that may be overlooked. The four stocks on this list have been going through price consolidations for the first half of , and could break out in the second half. When following these stocks, it is important to follow not only coal, but other minerals the companies work with. None of these is a pure coal miner. Checking the price of a basket of minerals will serve better than simply checking coal pricing.

A Primer On Coal. In addition, continue to monitor quarterly reports to see if any downtrend occurs in revenues or operating income. If a slip in those figures does develop, this could be an indication that the stocks are about to reverse the long upward trend they have been in. Dictionary Term Of The Day. A measure of what it costs an investment company to operate a mutual fund. Latest Videos PeerStreet Offers New Way to Bet on Housing New to Buying Bitcoin? This Mistake Could Cost You Guides Stock Basics Economics Basics Options Basics Exam Prep Series 7 Exam CFA Level 1 Series 65 Exam.

Sophisticated content for financial advisors around investment strategies, industry trends, and advisor education. Top 4 Coal-Mining Stocks as of June CLD, BHP By Kevin Johnston Updated June 14, — Cloud Peak Energy Inc. Is it time to exit coal stocks and coal ETFs? Investopedia assesses the future of the global coal business.

Despite government regulation, more competition and higher production costs, coal remains a relatively cheap source of fuel for electricity. With the right knowledge, investors can better understand coal and gain exposure with the investment vehicles available. The coal sector has suffered for years at the hands of cheap natural gas and stiff regulations. Coal production is decreasing, mines are shutting down and number of employees are shrinking fast.

Cloud Peak has high-quality thermal coal assets, but the recovery hasn't materialized yet. As a candidate for the presidency, Donald Trump vowed to save the coal industry from what he perceived was a war waged by his opponent. These coal-related exchange traded products are trading near the resistance of their long-term moving averages. Peabody Energy became the latest coal company to file for bankruptcy this morning.

It is a sign of the times for the coal industry. Learn about the mining sector and the many ways that mining companies profit from the location and extraction of minerals Learn about the three developed countries with the largest exposure to the metals and mining sector: Examine the energy sources for the United States, and learn how much of the total U. Explore Warren Buffet's rationale for the record setting Berkshire Hathaway acquisition of the Burlington Northern Santa Discover how the 12 original companies in the Dow Jones Industrial Average reflected broad market trends and how the present CLD , BHP , RIO , SOUHY.

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