The Hanson Hobbit: Finance, Opinions and Analysis http://carneal.org Mon, 07 May 2012 02:57:44 +0000 en hourly 1 http://wordpress.org/?v=3.3.2 A look at a problem in today’s market http://carneal.org/2012/05/06/a-look-at-a-problem-in-todays-market/?utm_source=rss&utm_medium=rss&utm_campaign=a-look-at-a-problem-in-todays-market http://carneal.org/2012/05/06/a-look-at-a-problem-in-todays-market/#comments Sun, 06 May 2012 19:35:24 +0000 hanson_hobbit http://carneal.org/?p=62 I have been talking about my past investing, but what is happening now?  What am I buying, selling?  Currently have several things I am watching. One is Alliance Resource Partners ARLP which I have owned for several years. If you keep with the news, you know that coal is under [...]]]> I have been talking about my past investing, but what is happening now?  What am I buying, selling?  Currently have several things I am watching. One is Alliance Resource Partners ARLP which I have owned for several years. If you keep with the news, you know that coal is under attack. The utilities have been given a time frame in which they must lower their emissions more than they have,  and the fuel of choice is natural gas which currently is very  cheap.  What to do with my stock.   Should I sell out or leave it for awhile?  Well at one point Cramer and other talking heads were saying sell, sell!  But I bought this stock for four reasons:  dividends, energy play, the price was right and they have mines in the area. Yes, still looking around where I live.  Lynch‘s ideal can be right. But…….

 

I have not sold as yet for I need to see what the company is saying on their next conference call scheduled for April 30.  Back at first of year, they said all but a very small  percent of their coal was under contract for the year and some for 2013 was under contract.  In checking with local workers, I  find they are running 24 /7.   My buy in price was around 25 dollars and current price is around 60.   I have owned it long enough that my gains would be long term and not short.  Are you saying what are you waiting for?  Sell hobbit sell!  But………..

Go back to the reasons I purchased this stock and you see I have problems. Not saying I will not sell, even if company still is selling coal right and left.  The market may force the sell.  One of the reasons I bought was the dividend. It is an MLP company giving a juicy 6.50%. So where is the replacement?  Hobbit, just get another company with similar dividend , don’t waste time  everyone knows coal is doomed!  but is it and can the company deliver overseas?  And who is the replacement?  Energy Transfer Partners, ConocoPhillips, Kinder Morgan, Duke Energy?  If you look at just these companies, you will see the problem. Time for a list in energy sector and research.   Hobbit, hobbit, why don’t you shoot first, research later.  May have to, but first let’s see what company is saying about moving coal overseas.

 

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