T = Trends Do Not Support the Industry
Due to an uncertain global economy and a weak domestic market, trends do not support the industry. On the other hand, there is strong growth potential internationally.
Arch Coal is a bargain if the economy continues heading in the right direction. If this ends up being yet another bubble, then Arch Coal’s stock price could be cut in half when that bubble pops. Arch Coal is likely to survive over the long haul, which makes it a decent speculative play, but it’s doubtful that the Cyprus situation and its effects on the European market are over. It’s possible that the situation will be contained, but if it’s not, then the global economy will suffer, which would be bad news for coal. Nobody knows how it will play out. Therefore, Arch Coal is a WAIT AND SEE.
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