ARLP
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shu_wd Mon Apr 28, 2008 4:30 pm    

ARLP 
Hi Blast,

How do you think arlp's ER today? also how does it compare with ico in FA? it has been "heng pan" for 3 years... today break out the first trading range. (while volume not big) thx
blast_investor Mon Apr 28, 2008 4:58 pm    

 
Hi shu_wd,


Yes, I like coal stock ARLP.

In fact, I would say that I like most of coal stocks unless the stock is unusually bad on fundamentals or high valuations.

The good part on ARLP is conservative nature of management. This is lower risk and lower upside stock in coal sector due to its long term nature of managing coal contracts. This protects the company's downside pretty well, which showed very well in past ARLP stock price performance. But its upside is also capped due to its conservative nature, and less CAPEX growth projects ongoing.

Stock price wise, this stock valuation is on par in the coal sector, not a relative cheap one within same sector.
 
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