I wrote about two seemingly unrelated subjects yesterday: last
. Turns out the two subjects were intertwined - at least for one
As the two candidates discussed their strikingly similar
energy policies last night, Mitt Romney uttered the following
words: "I like coal. I'm going to make sure we can continue to
burn clean coal."
That was the only mention of the fossil fuel all night. Yet,
incredibly, it was enough to convince people to invest in coal
Coal prices are on the rise today, driving up shares of
prominent coal companies such as
Peabody Energy Corp. (
James River Coal (
Peabody, the largest coal company in the U.S., was up 4.5% today.
James River climbed 12%.
That goes to show you the power of these presidential
Yesterday I wrote that presidential debates generally don't
sway voters, and thus have even lesser impact on the stock
market. And as a whole, that's true.
But in this case, Romney specifically plugged a natural
resource by name - a natural resource that is trading near
40-year lows, no less. Surely coal investors have been looking
for any signs of good news. The past two days, it has come in
First, the Financial Times reported that U.S. overseas coal
exports are on track for a record year. Now Mitt Romney has
reiterated - on a very big stage in front of a mammoth national
audience - his desire to continue ramping up coal production.
So it has been a very good 48 hours for coal. Better get in on
coal stocks now while the resource is still relatively cheap -
and before Romney mentions it again in his next debate.