BlackRock Sees Coal Stocks Doubling
BlackRock's Daniel Rice told Bloomberg that he could see coal stocks doubling with oil and gas companies lifting only 25 to 30%. Interesting comments because even though we're bullish on coal stocks some of the bargains are in the natural gas and oil service space. Rice has been very successful over the last decade so maybe we should continue to follow him with our overexposure to coal stocks such as Massey Energy (MEE), Alpha Natural Resources (ANR), and Puda Coal (PUDA). He does make some interesting points about remaining bullish on energy stocks unless oil surges above $120. Hard to tell if that will be the tipping point as consumers have already tasted that level of oil in the past and since made adjustments, but regardless demand will start to drop when oil rockets above $100. Nobody really knows the tipping point though. Just have to remain on guard. Rice's largest holding is Massey Energy so he appears to share the same opinion as Stone Fox on that stock. He s...