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Stock Picks: Coal-Fired Investing

Andrew Fisher
Friday, 8 Aug 2008 | 12:50 PM ET

With oil prices tumbling, what's happening to coal? Shneur Gershuni of UBS acknowledges that coal, oil and natural gas prices are closely dependent on each other, and recent price declines in coal stocks make them attractive targets for investors.

"We do think it's a buying opportunity for investors," he told CNBC. "The physical market continues to remain strong, and, whether GDP slows or not, we still need power, and we still expect the coal thesis to remain strong."

Recommendations:

At the top of his list is Consol Energy.

"The reason we like Consol is because of their exposure to the international market," he said. "A second reason...is because of their low cost...production relative to other Appalachian producers, and then, finally, they also have exposure to natural gas."

Gershuni also likes Peabody Energy and James River Coal.

Coal To Fire Up?
Discussing if now is the opportunity to invest in coal stocks, with Joseph Lavorgna, Deutsche Bank; Shneur Gershun, UBS coal analyst; Jeremy Sussman, Natixis Bleichroeder coal analyst; and CNBC's Melissa Lee.

Disclosures:

James River Coal is an investment banking client of Gershuni's firm.

Disclaimer

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