Pete Najarian has been telling you for a while, but on Friday Arch Coal confirmed that business is brisk and strong global demand is pushing coal prices higher.
Net income in the quarter rose to $113 million, or 78 cents a share, from $37.6 million, or 26 cents a share, a year ago and above Wall Street's expectations of 64 cents a share.
Arch Coal also raised its full-year outlook. “We’re seeing tremendous demand growth on a global scale,” says chief executive Steven Leer on Fast Money. “Looking forward we see the energy deficit continuing over the next three to five years and actually growing over the next three to five years.”
It’s probably no surprise that Leer expects to see huge growth in Asia. ”When you look at the Pacific Rim the growth factor there is tremendous. In China they’re adding a coal-fired power plant at a rate of one-per-week.”
Leer tells the traders that he sees any dip in his company’s stock as a buying opportunity. As the Pit Boss would say, Giddyup!
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Traders how are you playing coal?
I own International Coal Group , says Pete Najarian, but just because it was a cheaper than Arch Coal.
I bought Market-Vectors Coal ETF today, reveals Joe Terranova.
I like coal too, adds Quint Tatro. I think it could be time to start wading in after a “normal retracement.”
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Trader disclosure: On July 25, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Najarian Owns (AAPL), (TSO), (ICO); Najarian Owns (XLF) Puts, (YHOO) Calls; Najarian Owns (CSCO) Calls; Seymour Owns (AAPL), (BAC), (F), (MER), (MSFT), (TSO); Seygem Asset Management Owns (FXI), (EEM), (NIHD) ;Seygem Asset Management Owns (RSX) Calls; Terranova Owns (YHOO), (XLF), (BNI), (IYT), (SU), (RIMM), (VLO), (SA), (CME), (GOOG), (INTC),( KOL); Terranova Is Long Gold December Futures; Terranova Is Long Crude Oil September $154 Calls; Terranova Is Short Crude Oil September $130 Calls; Terranova Is Short Crude Oil September $130 Puts
Terranova Is Chief Alternatives Strategist Of Phoenix Investment Partners, Ltd.; Phoenix Investment Partners Owns More Than 1% Of (DBV), (RWX), (LNET), (EXR), (SKT), (DLR), (IGE), (ARE), (DBC), (ABD), (OFC), (CLB), (BLV), (CNTY), (FL), (HPC), (PSPT), (ESS), (OIIM), (BIG),(ENG),(PFD),(DRH)
Terranova Is Co-Portfolio Manager Of The Phoenix Diversifier PHOLIO; Phoenix Diversifier PHOLIO Owns (IGE), (DBC), (DBV)
Quint Tatro Is The Principal Of Tatro Capital; Tatro Owns (C), (GS), (JPM), (FSLR); Tatro Capital Owns (CHK), (JNJ), (QQQQ), (SPY), (DUG), (XLF), (GRMN), (ASTI), (JASO), (EEV)
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