Time for Coal to Rebound?

Video information

Source: CNBC
Added: 04-13-2012
Tags: coal

let's move the discussion to coal. those stocks are historically sheep and our next guest says the worst could be over for coal names. let's welcome david. how are you? good afternoon. coal stocks have been hammered. as we sit here and watch natural gas break below $2, what's the outlook for some of the names? big outlook is now on the side being driven by china for the most part. that's where the real positive outlook with coal is. in terms of thermal side, coal prices have bottomed. most of the coal to gas switching has been done. we think we're in the late innings for that. at the end of the day it's still china story for coal right now. is one of the most leveraged names there. do you think the massey acquisition, the stock is 3 times even on next year's numbers, way below the group, i know it's up a lot today, but do you think it has more room as they can prove that the deal i better than people think? this is one of the top names in the space. they won't do well this year. they will cut production. at the end of the day the big thing is with all production cuts that are coming in coal. you'll see prices stabilize. alpha is one of our top picks. since midsummer when wtle was $130 stock. it has been a grim death. there have been takeover rumors in the stock forever. what's the problem? i understand it's higher today but what's going on with wlt here? it did a deal a year and a half ago buying canadian operations. they struggled with that. they struggled with their own production growth. at the end of the day it's china story on what prices have done dropping from over $300 a ton to currently around 210. we think we're closer at the bottom so we think it's also a good opportunity to buy these levels below $60 a share. we'll talk to you again soon. patty edwards, do you like walter? i do like walter. it's one i will add more to over the next we're or so. i don't know if i want to do it today with the move we've seen. it is on the bottom. it is traveling six or seven times. that's something i would be willing to pick up. if you saw a pullback you may think about pulling the trigger? we own some now. i'll be adding to positions i want to do. next on halftime report, will

Other videos