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Wednesday, February 1, 2017 Stock Pick

Stock Price: $23.80

Alliance Resource Partners LP produces and markets coal to United States utilities and industrial users.

ARLP is a stock that has been on the radar the past few days with crude oil staying near 52-week high levels. With higher priced oil comes the chance for coal to enter as a cheaper energy alternative again. Coal is entering a more favorable environment and this can be beneficial to a company like ARLP.

ARLP just released an earnings surprise with revenue coming in at $527.4 million and net income of $99.61 million. This was extremely strong earnings growth for ARLP from a net loss a year ago $13.13 million.

Some people are saying coal is never coming back, but that was said about coal before and high oil prices brought coal back. Some coal power plants may have went into bankruptcy due to regulation, but they can spring back because many are still operating.

ARLP is not far off 52-week high levels and has consolidated since early November. ARLP is due to start a new, strong uptrend.

Speculative Score: 2

1 Being the Least Speculative and Most Confident

10 Being the Most Speculative and Possibly the Most Risky

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