Out Fox The $treet

Brean Murray upgraded one of our favorite coal stocks in Massey Energy (MEE) today helping lead to a 6% jump in the shares. MEE has been a stock that we've loaded up in the sub $30 range for a few months now. The stock was completely oversold following the accident at the Upper Big Branch back in early April. Investors buying now missed out on a steal in a early July and late August but the run is likely just getting started. See article from July 14th: Buy the Other Disaster Stock According to Brean Murray : Sussman wrote that "the regulatory pressures are largely priced into the stock, so that the risk-reward balance is now favoring investors who own the stock." In addition, Massey should benefit from its leading position in producing Central Appalachian coal. Its value for each ton of reserves is around $1.40, compared with an average of $1.90 for similar companies, he wrote. Stock is in the process from breaking out.  Needs to clear $34 but it has already...

Brean Murray came out with a Buy rating on Puda Coal (PUDA) today with a $17 target. PUDA was trading sub $10 yesterday and is currently up 12% today with a new 52 week high. Since PUDA was an uplisted China stock, its greatly lacked in visibility even though its in the process of consolidating 12 coal mines that are in high demand in China. This coverage should go a long way in providing visibility and credibility to PUDA. The stock has huge upside since the first 2 mines won't be consolidated until May. Even with that, PUDA expects to earn $1.10 to $1.50 in 2010 based off a profitable coal washing business plus a partial year of these 2 thermal mines. Lots of upside from the other 6 thermal mines and especially the 4 new coking coal mines they just got approval to consolidate. Read more about PUDA from a post we wrote on March 15th - Puda Coal Cools Off But Will Heat Up Again .