Click to EnlargeAlliance Resource Partners (NASDAQ:ARLP): The market storyline says coal will soon be run to extinction because of new EPA regulations curtailing pollutants and forcing upgrades to scrubbers on coal plants. But the real losers will be small coal power plants with no scrubbers. They’re simply not worth the cost of upgrading. But coal isn’t going anywhere. The driver of growth at U.S. coal mining companies may not be domestic demand, but rather rapidly increasing demand for coal from Asia. China and India are expected to double their energy consumption by 2035. Buy ARLP to gain exposure to the fourth-largest coal producer in the Eastern U.S. My relative strength chart shows ARLP’s long record of outperformance compared to the S&P.
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