The cacophony over crude oil has put the coal industry in an undeservedly quiet corner of the stock market. However, knowledgeable investors have eagerly sought out gems from this part of the Energy Sector. The entire industrial world may soon embark on a voyage of rediscovery of this symbol of U.S. dominance.
The coal mines of North America have been pillars of the first stages of the Industrial Revolution. That movement may have started on the other side of the Atlantic, but this liberal and economical source of power heralded U.S. supremacy. Coal gave way to uranium and crude oil as society developed new expectations of the sector. Runaway inflation, concerns over relations between the United States and some oil-rich countries, and sequestering technology, have come together during mid-2008 to collectively breathe new life in to the long-smoldering cash flows of coal stocks.
There are about 20 companies from the coal industry listed in North American stock exchanges. Less than five of them are from the small-capital segment. Such stocks have even greater appreciation potentials than their large-capital peers. All coal reserves and mines owned by listed companies have chances to appreciate in the new energy scenario. Small-capital companies can grow both organically and through the acquisition route.
The coal industry as a whole has appreciated by about 150% in the 52 weeks ended mid-June 2008. The last 30 days have seen stocks settle at a completely new plane. Most experts agree that any dramatic reductions in crude oil prices are unlikely, while continued inflation in prices of this commodity remains a real possibility.
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