- Coal is a hated industry. Arch Coal valuation near lows; 20% or better bounce seen

- Coal a necessary commodity in U.S. and especially overseas; sentiment hurts stock

- Rival Peabody draws growing interest from Elliot Management.  Could ARCH do same?

The video in this report is only accessible to members

The skyrocketing price of Tesla (TSLA) shares in recent weeks is seemingly pointing to a future for energy related stocks that reduces or excludes fossil fuels.  Today I want to discuss coal.  Wait, come back. Hear me out for a moment.

Coal is not dead, despite the efforts of large institutional investors to delegitimize it. Coal is still used for producing electricity (thermal) and making steel (metallurgical) all around the world, especially outside the U.S. The more that the consensus is anti-coal the bigger the opportunity for the contrarian if, as I believe, the consensus is wrong. While coal use has been reduced over the years, I think that economic reacceleration in the U.S. and the global economy, which we expect, is going to help improve the worldwide coal demand later this year.

A stock that has been battered beyond what I believe the fundamentals justify is Arch Coal (ARCH), a low-cost producer and one of the largest coal miners in the world, with operations in Appalachia, Powder R...

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