Arch Coal Inc. (fka ACIIQ)

[mr_bitterness]

Annotated chart & some PE comments

http://stockcharts.com/h-sc/ui?s=ACI&p=D&yr=0&mn=6&dy=0&id=p52017816180&a=147385611

Many reasons this chart *should* be taking off soon. You need to be a stockcharts member to see the notations. 3rd bounce off the 200MA this year. Also look at when it bounced off the 200MA in Jan 08. Watch support closely.

With triple earnings growth just reported, what is ACI doing at a PE of 26?
Some PE & Forward PE ratios from Yahoo:

sym - $PPS - p /e - forward p/e

ACI - $54.21 - 25.89 - 8.8
ARLP - $48.69 - 18.8 - 10.29
BTU - $64.77 - 48.96 - 10.64
CNX - $67.85 - 79.53 - 8.52
JOYG - $71.74 - 27.5 - 16.05
MEE - $75.37 - 58.79 - 12.75
WLT - $104.65 - 47.87 - 6.53

ARLP is losing money and trading at an 18 PE.
JOYG and ACI are close but JOYG has a forward PE twice that of ACI's.

ACI would be $108/share if it's PE doubled up to a more appropriate valuation of 52, and it'd still have a lower PE than MEE & BTU right now. Even giving ACI fwd PE a +25% correction (to 11), a 25% correction in PPS would be ~$67.76. Now if earnings keep tripling...