Tuesday, August 19, 2014

Gartman is bullish on Coal, cites Aluminium call from past

Aluminum shares have been one of the leaders on the S&P for the past 10 months. I feel the same way about coal.

Coal is still going to supply 41 percent of the United States electricity generation and 43 percent of the world's electricity production. If you look at that sort of thing and think that you're going to expect or going to get continued global economic growth  and I think that you are—then one of the cheapest entities out there has to be coal.

It is a long-term leap on continued economic growth. Buy four or five of them. Two of them probably will go out of business. Two of them will probably double or triple, and one of them may be a 10-bagger after all the smoke clears. That's probably what will end up happening.