Coal Plays On Fire Triggering My Love For National Coal Corp. (NASDAQ:NCOC), (NYSE:PCX), (AMEX:PUDA)
Commodity stocks have been ripping of late. After the Jobs Report on Friday, the U.S Economy seems to be on the path to a solid recovery or so it may seem to most. Positive comments have emerged on many sectors from steel to coal. With analysts seeing a recovery not only in the United States but around the world, commodity prices have soared. Oil is now over $80 per barrel and other energy sources are not far behind.
Talk on coal has been extremely positive and stocks like Puda Coal, Inc (AMEX: PUDA), Patriot Coal Corporation (NYSE: PCX) and James River Coal Company (NASDAQ: JRCC) have not disappointed. These stocks have seen a meteoric rise. Just in the last three weeks, PUDA has jumped over 100%. Larger players like Patriot Coal have also ripped higher to the tune of 30% or more.
Over the weekend I was looking through these charts which you can view below and I came across National Coal Corp. (NASDAQ: NCOC). This coal stock has been crushed and seen none of the recent momentum in the sector. With the momentum pushing so hard and the gains in other coal stocks so high, it is hard to believe National Coal Corp. will not see some of that love. While any stock trading below $1.00 carries a ton of risk, I think it has some potential at these levels in the near term. I picked up some myself today at current levels and will see how it plays out.
Disclosure: Chief Market Strategist Gareth Soloway is long National Coal Corp at the time this article was written.
Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
