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Coal Could Be Making a Comeback: Analyst

Coal stocks could be making a comeback as it begins to look more attractive to utilities, Sterne Agee analyst Michael Dudas said Monday on CNBC.

“I think you’re seeing a lot of utilities switch back right now,” he said on “Fast Money.”

“I do think you’re seeing some more coal dispatches relative to gas, and that should be helpful for demand and pricing going forward.”

Dudas said that he did not expect consolidation before the November presidential election, although a weaker dollar could provide incentive. “We have to see how the elections play out,” he added.

Production cuts in coking coal and coal used to produce iron ore will likely maintain pricing pressure.

“We’re probably in the fourth or fifth inning of the recovery there, but I think we’re closer to the seventh or eighth inning on the thermal side,” he said.

Trader disclosure: On Oct. 8, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s “Fast Money” were owned by the “Fast Money” traders: Tim Seymour is long BAC; Tim Seymour is long SBUX; Tim Seymour is long AA; Tim Seymour is long GM; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long JPM; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long MSFT; Karen Finerman is long GOOG; Karen Finerman is long GM; Karen Finerman is long GLUU; Karen Finerman is short SPY; Karen Finerman is short IWM; Karen Finerman is short MDY; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Pete Najarian is long AAPL; Pete Najarian is long C; Pete Najarian is long JPM CALLS; Pete Najarian is long INTC CALLS; Pete Najarian is long SBUX; Pete Najarian is long MSFT; Pete Najarian is long LLY;

For Michael Dudas
Sterne, Agee & Leach, Inc. makes a market in the following subject company ANR
Sterne, Agee & Leach, Inc. makes a market in the following subject company ACI
Sterne, Agee & Leach, Inc. makes a market in the following subject company CSX
Sterne, Agee & Leach, Inc. makes a market in the following subject company BTU
Sterne, Agee & Leach, Inc. makes a market in the following subject company WLT.

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