Commodities Trading: Coal power plants don’t die
Today's Financial News - Posted April 29, 2008
“There’s something very simple and compelling about the number 1,000. That’s how many coal-fired plants are scheduled to be built in the next five years, many of them in China and India.” — Andrew Gordon
by Andrew Gordon
Baltimore — (TFN): We love commodities here at Investor’s Daily Edge. My colleague Rusty McDougal lives and breathes commodities. My other colleague Charles Delvalle is easily mesmerized by the shiny metals. And both have converted their fascination with commodities into huge money-making investment recommendations.
So who am I to question the dentist and the precious metals sleuth, especially since some of my very best stock recommendations – like Bucyrus (BUCY: NASDAQ) — have also sprung from the amazing seven-year climb in commodities.
Commodities Trading: A contrarian trend
I recommended Bucyrus about a year-and-a-half ago. The company makes coal and copper mining equipment. I could have gone with a coal-mining company instead. But rising coal prices had made coal companies a bit expensive. BUCY’s price was still cheap. It was probably a vote of “no confidence” on a softening domestic market and uncertain global prospects… supposed signs that dirty coal was falling out of favor.
I knew better. It probably had something to do with the fact that I like to keep things simple. And there’s something very simple and compelling about the number 1,000. That’s how many coal power plants are scheduled to be built in the next five years, many of them in China and India. Read on to learn more.
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