The Chart of the Day belongs to the thermal Cola limited partnership Alliance Resource LP (NASDAQ:ARLP). I found the stock by sorting Barchart’s Top Stocks to Own list first by the most frequent number of new highs in the last month then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Spotter signaled a buy on 12/17 the stock gained 25.30%.
Alliance Resource Partners, L.P., a diversified natural resource company, produces and markets coal primarily to utilities and industrial users in the United States. The company operates through three segments: Illinois Basin, Appalachia, and Minerals. It produces a range of thermal and metallurgical coal with sulfur and heat contents. The also company operates seven underground mining complexes in Illinois, Indiana, Kentucky, Maryland, and West Virginia. Further, it leases land and operates a coal loading terminal on the Ohio River at Mt. Vernon, Indiana; and buys and resells coal, as well as owns interests in various oil and gas mineral interests located within producing basins in the continental United States. In addition, the company offers various industrial and mining technology products and services, such as miner and equipment tracking systems, and proximity detection systems. As of December 31, 2020, it had approximately 1.65 billion tons of proven and probable coal reserves in Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia. The company was founded in 1971 and is headquartered in Tulsa, Oklahoma. Yahoo Finance
Barchart’s Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.
Barchart Technical Indicators:
- 100% technical buy signals
- 175.50+ Weighted Alpha
- 156.23% gain in the last year
- Trend Spotter buy signal
- Above its 20, 50 and 100 day moving averages
- 16 new highs and up 42.15% in the last month
- Relative Strength Index 76.39%
- Technical support level at 14.20
- Recently traded at 14.41 with a 50 day moving average of 11.48
- Market Cap $1.87 billion
- P/E 11.24
- Dividend yield 5.74%
- Revenue expected to grow 17.40% this year and another 11.90% next year
- Earnings estimated to increase 263.70% this year and an additional 49.70% next year
Analysts and Investor sentiment — I don’t buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it’s hard to make money swimming against the tide:
- Wall Street analysts issued 3 buy and 2 hold opinions on the stock
- The individual investors following the stock on Motley Fool voted 694 to 30 that the stock will beat the market with the more experienced investors voting 71 to 7 for the same result
- 15,220 investors are monitoring the stock on Seeking Alpha
- Seeking Alpha gave the stock a 4.98 out of 5 Quant rating
Conclusion: Although Washington may have their sights on the fossil fuel industry utilities still use coal as a major fuel source to generate electricity and from the looks of this stock’s price momentum investors seem to agree that there is still room in their portfolios for fossil fuel. I think you should ride the wave till it breaks.
The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop-loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.