Peabody Energy Corp (BTU-N)

A coal company that stands out for quality of the balance sheet. They also have operations in Australia. Somewhat diversified by having some oil/gas assets. Very strong balance sheet and will be a survivor. Hasn't bought this yet as he doesn't have the confidence that things are poised to turn in the next year or so. If you were going to buy coal it would be this one.

When stocks act positively on bad news that is always a great indicator that maybe the news has already been discounted in the market place. He looked at this one. If natural gas prices continue to move higher, coal does represent an attractive alternative. It is always going to come down to the economics. A very strong lobby and very regionally focused industry. There is going to be a big, big push to keep jobs. This is something you could look into.

(Market Call Minute.) They are swimming upstream here because long-term coal is going to be a problem, and there’s a big push to replace with natural gas.

A lot of bad news is priced into the coal sector. You have to wait for the lows to confirm themselves.

Probably one of the biggest coal producers. Coal has come under pressure like a lot of commodities. Expects China will do something. So as soon as growth in China starts to pick up, certainly by the 4^th quarter this year, coal prices will pick up.