Stock to Sell #2 – Arch Coal (ACI)
Coal is under attack with President Obama pledging to put the coal companies out of business. Natural gas is the fuel of choice for America’s largest utilities, and recent government edicts against coal companies make coal less attractive.
Arch Coal (ACI) ended Q2 with a loss, and so the company’s $0.12 annual dividend (2.8% yield) is in jeopardy.
Technically, a rally from the $3.47 low to $5.25 failed as the stock pierced its 50-day moving average on Sept. 27. Sell ACI at the market.