The Best Stocks for the Rest of Trump’s Term: Cloud Peak Energy (CLD)
To say Donald Trump is a fan of coal is an understatement. He loves it, more than once describing it as “beautiful.” He’s also already axed regulatory hurdles that made it all but impossible to mine and use, and since September, coal prices have advanced 30%.
It bodes well for the entire coal industry, but Cloud Peak Energy Inc. (NYSE:CLD) is the proverbial diamond in the rough.
Don’t misunderstand. Cloud Peak Energy is still a risky bet. Not only is it a micro-cap with a stock priced at less than $5.00 per share, but coal is still a politically charged word. Nobody can really see its long-term future.
On the other hand, Cloud Peak Energy is one of the few names that has been able to maintain at least a little profitability. That’s something.
It’s also worth noting that its primary operation is in the Powder River Basin, in Montana and Wyoming, leaving it close to the west coast where it can easily ship to Asia … an area that’s still hungry for coal. Better yet, Cloud Peak’s resource is low in sulfur, making it much less of an environmentalism target.