Tuesday, 29 November 2016

CNX - rising as the war on coal is ending

Whilst the main market settled moderately higher, there was notable strength in Consol Energy (CNX), which settled +2.6% @ $20.25. November is set to close very bullish, with the $26-28 zone probable by late spring/early summer 2017.

CNX, daily

CNX, monthly


It has been a very long time since I highlighted any of the coal miners. Since I started posting here in spring 2012, all but one of the old familiar names has imploded, and been effectively delisted to the pink/junk sheets.

Consol is the last surviving properly-listed US coal miner. It imploded from the $47s in summer 2014 to a low of $4.53 this past January.

Effectively, CNX has since hyper-ramped 300% across the year, back to levels last seen in July 2015. From a pure price perspective, there really isn't anything but empty air to the 26/28 zone.

In terms of profitability, CNX is still struggling... see: http://finance.yahoo.com/quote/CNX/key-statistics?p=CNX

The war on coal ending

For those who watched the many Trump rallies, one particularly regular issue was the notion of ending the 'War on coal'. A Trump administration will no doubt help the coal industry to some extent, not least in terms of levelling the playing field against solar.

Further, most fail to realise that besides energy production, coal has many industrial uses.

It will be interesting to see how CNX trades into next spring, and how much President Trump highlights the coal mining industry.