Nov 26

Alpha Natural Resources a major buy?

If there is one sector which has been smashed down the most it must be something like the coal sector. When something is depressed and everything looks ugly , it usually gives you good buying opportunities.

1) Coal sector been slammed down past years heavy , we see clearly on ANR and other coal stocks 5 waves down from the top. This could mean an end of the BEAR market in coal stocks and a bull market to start.

2. ANR seeing clearly 5 waves down from top , bullish if ANR start to rally/bounce from here (on short term charts I see bottom forming in all coal stocks) so my bet is more upside coming soon.

3. ANR book value of 15$ per share and cash value at 5$ per share trading now at 2s… seems cheap and if coal sector recovers from here ANR could be one of the stocks spiking the most.

4. Monthly chart bullish divergence on MACD (bullish exhaustion to downside)

5. Everyone has long forgotten all coal stocks and when nobody talks about it and forget it , usually that is the time to load up cheap.

All in all I see GREAT value in ANR and coal miners here at 2.2$ if you have a stop at this year lows around 1.6$.

I’m long


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