Archive for the ‘National Coal Corp. NCOC’ Category

Dutton Associates Featured Company: National Coal Corp. (NCOC)

Monday, July 21st, 2008

National Coal Corporation (NASDAQ: NCOC) began operations in 2003, engaging in the mining, processing, and selling of bituminous steam coal from mines located in East Tennessee and Northern Alabama. Founded by a former analyst from Merrill Lynch, they have focused on consistently delivering high quality bituminous steam coal to their customers while building a foundation based on increased productivity, superior land reclamation, strategic partnerships, and a commitment to a strong safety policy. The company sells most of their production to electric utility customers, with the largest ones being South Carolina Public Service Authority, Georgia Power, and Duke Power.

National Coal is involved in the reclamation of land, which is carefully planned and included as a part of the entire mining process from beginning to end. Environmental experts, residents, state and federal officials, along with other interested parties, work together to determine the most desirable use of the land. Utilizing new technology and enhanced scientific methods, reclamation has become a much more effective process and results in a more environmentally sensitive result. Additionally, National Coal is funding research to find plants and shrubs that are adapted to the areas being mined, ultimately ensuring that the area returns to its former state quickly and successfully.

The company owns the coal mineral rights to approximately 65,000 acres of land and leases rights to an additional 42,000 acres. Their active mining complexes include two underground mines, five surface mines, and two highwall mines, four prep plants, and four train facilities. Over the years the company’s production has grown greatly, up to almost 1.5 million tons.

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Clear Blue Skies Ahead for National Coal Corp. (NCOC) Business

Wednesday, July 16th, 2008

The price of this stock at the start of the third trading week of July 2008 was about 50% below the 52-week high of $10.83. The Earnings per Share have disappointed investors at -1.49. However, no coal industry stock should be “written off” at the stage. Indeed, a careful review will show that the corporation has excellent future business prospects.

Annual sales growth during the Most Recent Quarter has exceeded 85%. The company owns and leases about 100,000 acres of coal-rich lands, which are supported by extensive infrastructure for logistics. It has top electricity utility companies on its rolls of customers. The company is strongly positioned to ramp up production as demand for coal grows. It has retained mining rights to some of the properties it sold in the recent past.

The corporation is of relatively recent origin, but the key executive team has decades of relevant business and management experience. The company is focused on superior grades of coal. It is known for professional land operation and for safe mining procedures. Investors can expect it to evolve as a responsible and dynamic member of the industry.

Influential investors have recently bought blocks of this company’s shares. This has added to the prestige of the stock, apart from the useful cash inflow. Retail stock investors would do well to follow suit. Emerging clean coal technologies and runaway crude oil inflation suggest that every portfolio should include stocks of this category.

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