In a tough tape on Friday Coal related stocks performed above average and look to continue to run with profitable expectations growing. Massey Energy (MEE), Alpha Natural Resources (ANR) and Arch Coal (ACI) all have rising earnings expectations and are at 52 week highs. Just this past Monday, a broker, David Khani from FBR Capital Markets raised his price guidance for coal for next couple of years. Massey Energy had a 1.48% increase on Friday when the S&P 500 fell 3%. This heavily covered producer of coal has had their current year earnings estimates increased for the current quarter from 0.50 to 0.76 in the past 90 days. The 13 analysts that cover the stock have also raised the yearly earnings estimates. The yearly earnings estimates have risen from 1.96 to 2.97 in the same 90 day period. Revenue is expected ...

If you overlay the natural gas stocks over the coal stocks, it's the identical pattern since last Thursday, only with about half the gains... still some very nice moves for 3 days of work. Since my natural gas stake (3 positions, about 6%) is smaller than coal I am not taking any profits here, but once again just remember this the next time the 'early cycle', 'it will all be fine' folks start clucking. Let's compare Fannie Mae (FNM) to Cimarex Energy (XEC) Now, in the most recent period people were so fearful of financials that any news saying they won't be bankrupt was CHEERED - huge writeoffs? Better than expected! Take the stock up!... equity dilution? At least it's not out of business! Take the stock up! - but at some point the longer this goes (and it won't reverse in a quarter or two like many would have you ...