Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Alpha Natural Resources, Inc. (ANR), CONSOL Energy Inc. (CNX): Buy This Coal Stock if…

Few Americans want anything to do with coal, even outside of Christmas time. It’s not the most environmentally friendly fuel, it isn’t a thrilling gift to find in your stocking, and it is quickly being replaced by cheaper and cleaner burning natural gas. Overseas, though, it’s a completely different story. Take a look at this chart:

SOURCE: Peabody Energy Corporation Investor Presentation

As it would appear from that chart, coal’s not going to become a fossil anytime soon. In fact, it might be time to add bit of it to your portfolio to profit from this future growth. To help you better determine which coal stock you’ll want to buy, I’ve compiled the top reason why you’d want each company in your portfolio.

…you want easy access to the growth in Asia
Few companies have better access to the growth in demand for coal in Asia than Peabody Energy Corporation (NYSE:BTU). Not only does Peabody have coal operations in Australia, which it acquired in 2011, but its U.S.-based operations in the Illinois and Southern Powder River basins are strategically positioned for exporting to these Asian growth markets. Its deal with Kinder Morgan Energy Partners LP (NYSE:KMP) to export coal out of its Houston, Texas and Myrtle Grove, La., terminals is just one more option for this company to access the international marketplace. In my opinion, an investment in Peabody is an investment in the growth of coal usage in Asia. 

…you want to add some natural gas
Knowing that natural gas is taking a bite out of coal’s share of the energy pie, CONSOL Energy Inc. (NYSE:CNX) has decided that if you can’t beat them then you join them. The company is investing two dollars to grow its natural gas business for every dollar it spends to grow its coal production. Taking that one step further given its current plan, the company is not planning on spending any money to grow its coal production after 2014.

Even with the all the money CONSOL Energy Inc. (NYSE:CNX) is investing in its gas business, the company is still a coal company at heart. It also has a very good export business with excellent rail transportation to send its Pittsburgh seam coal to its 100% owned Baltimore terminal for export. That terminal gives the company access to the world’s markets, and it currently exports to four continents including Asia.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.