rjchilia123

Super cheap 14% dividend buy

Long
AMEX:KOL   None
Looks like the early stages of an uptrend. I’m not particularly bullish on coal, like I am on Gold and Silver, but I think commodities are generally cheap. The downside to coal is the movement to clean energy but if the economy is bad going forward there will likely be less focus on clean energy. This etf has a lot of foreign exposure which is good for a falling dollar. This etf is trading at only 6.5x earnings and it’s below book value with a 14% dividend. Technically speaking it appears to be in the early stages of an uptrend. This etf was at $500 so it’s down over 80% I don’t see very much downside risk it’s already super cheap with a 14% dividend. If the market starts to fall along with metals this etf could fall as well but I don’t think it will fall that much. Absolute worst case scenario is that it goes back to around $60. We won’t know until it breaks the pattern but it looks like a potential bull flag right now.
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