Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, coal producer Alliance Resource Partners, L.P. (Nasdaq: ARLP) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Alliance's business and see what CAPS investors are saying about the stock right now.
Alliance facts
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Headquarters (founded)
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Tulsa, Okla. (1971)
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Market Cap
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$1.22 billion
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Industry
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Coal and Consumable Fuels
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Trailing-12-Month Revenue
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$1.2 billion
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Management
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President/CEO Joseph Craft, III (since 1999)
CFO Brian Cantrell (since 2005)
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Return on Capital (average, last three years)
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23.2%
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Dividend Yield
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8.9%
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Competitors
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Peabody Energy (NYSE: BTU)
Arch Coal (NYSE: ACI)
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CAPS Members Bullish on ARLP Also Bullish on
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General Electric (NYSE: GE)
Johnson & Johnson (NYSE: JNJ)
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CAPS Members Bearish on ARLP Also Bearish on
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IBM (NYSE: IBM)
Starbucks (Nasdaq: SBUX)
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Sources: Capital IQ (a division of Standard & Poor's), and Motley Fool CAPS.
Over on CAPS, 474 of the 489 members who have rated Alliance -- some 97% -- believe the stock will outperform the S&P 500 going forward. These bulls include KyrieLoon and All-Star mm20001, who is ranked in the top 0.3% of our community.
Last month, KyrieLoon tapped Alliance as a rather bankable bet on black:
Say what we will about the environmental problems of coal use, the economic realities are that we will be generating power with coal for decades to come. [Alliance] has a long track record of profitability and a consistently increasing dividend ... – that's a tough act to better.
In a pitch from two weeks ago, mm20001 expands on the stock as a stable income opportunity:
[Alliance] is a [master limited partnership] that produces coal for utilities and industrial users in the US. The stock price hasn't really gone anywhere in the past 5 years, but the dividend has been steadily increased from $1.24 in 2004 to $2.92 for a 9% yield currently. Given the attractive yield, a forward P/E of 6 and manageable debt of $459M (vs. $211M in cash), [Alliance] is a worthy investment around $30.
What do you think about Alliance, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 135,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.
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