Stock to Sell #3 – CONSOL Energy (CNX)
CONSOL Energy (NYSE:CNX) has been in a bear market since March 2011. It is the leading developer of bituminous coal in the Appalachian Basin with enormous reserves. However, increased government regulation that limits the use of coal as an energy source has resulted in erratic earnings and a downward spiral in the price of its stock.
Since early last year, CNX has been trading in a bear channel with a target of under $28. Recently the stochastic issued a new sell signal following a shallow rally. Shareholders should use the rally to sell CNX.