Coal: The Real Black Gold

5/8 - "Oil prices have made the headlines recently," says Martin Hutchinson in The Money Map Reporter. "But the miracle fuel of the 19th Century is coal, the forgotten fossil fuel."...Coal prices have zoomed northward during the past year. The current spot price is around $135 per metric ton, more than double the level of a year ago...Since both India and China are expected to quadruple their power consumption by 2030, most of that increase must come from coal-fired stations. What are the best buys in the sector?"

"St. Louis-based Peabody Energy (NYSE: BTU) is the world's largest producer of pure coal, with reserves of 9,000 million metric tons [which have a sale value of $1.3 trillion at today's inflated prices]. At 16 times 2008 earnings, it's not overly expensive; indeed, given its reserves, its market capitalization of $14 billion makes it look like a bargain....