Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, coal producer Alliance Resource Partners L.P.
With that in mind, let's take a closer look at Alliance Resource's business and see what CAPS investors are saying about the stock right now.
Alliance Resource facts
|Headquarters (Founded)||Tulsa, Okla. (1971)|
|Market Cap||$2.88 billion|
|Industry||Coal and consumable fuels|
|Trailing-12-Month Revenue||$1.65 billion|
|Management||CEO Joseph Craft III (since 1999)
CFO Brian Cantrell (since 2005)
|Return on Capital (Average, Past 3 Years)||19.3%|
|Cash/Debt||$339 million / $725.8 million|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
Late last month, epeon touched on several of Alliance Resource's positives:
It has a nice cashflow, long term contracts, and increasing production. What is not hard to like? It pays you a nice dividend while you hold it and it has been increasing the dividend.
Alliance Resource's robust three-year average return on capital of 19.3% even tops that of rivals Arch Coal (5.2%), CONSOL (13.4%), and Peabody (11.8%).
CAPS member secretbonus expands on the Alliance Resource outperform argument:
[E]ven if you add a carbon VAT tax to the coal business, which seems to be the major fear, I believe this company will still hang in. Coal demand is expected to grow substantially ... but even if this company has 0 growth and earns $7 per share ... 10 years worth of earnings is plenty. ... ROE, ROI, ROA is incredible meaning there likely is good management. On the upside if there is growth and no political intervention this is an incredible opportunity here.
What do you think about Alliance Resource, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Alliance Resource. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.