Wednesday, February 2, 2011

I am in-Cline -d to buy this one

Tim from Slope of Hope pointed out Patriot coal earlier this week, and the chart on that stock looks beautiful.  Now compare that stock with an American Coal miner from Colorado, Cline Mining CLNMF. 

Patriot Coal has 1.8 billion tons of coal and a 2.6 billion dollar market cap.  It's about $28/share.  Cline has a 555 million tons of coal and a market cap of 560 million dollar market cap.  It's about $4.40/share.  Cline is 13 times as undervalued  in comparison, for their assets.  For production, Cline expects to mine 3 millon tons of all met coal, whereas Patriot expects to mine 28 million tons, of which 4 million is met coal. On a revenue scheme, Patriot is four times larger, yet 13 times more valuable.

I sense an opportunity.

No comments:

Post a Comment