Today our position in CORR closed automatically at our target price – a full 6 weeks ahead of schedule. This turned out to be a temporary spike over our target, but it didn’t fall much below that. We will consider re-assuming this position if it falls back to yesterday’s open next week, but are very satisfied to pocket the profit for now.
We also took a position in Cloud Peak (CLD) – a major coal player in Pennsylvania and Indiana. In years past this would have been a terrible move as tightening EPA restrictions made coal less and less profitable as a fuel source, but under the new administration with an EPA head who doesn’t believe in the existence of the EPA we expect a bullish period of hopefully at most four years. The uptrend in coal began the day after election day, so even if the new administration makes no changes it will continue for at least the first year in office.
We’re also eyeing a position in CECO Environmental (CECE) – a company that manufactures filtration agents for energy production (scrubbers). This issue would increase alongside any increase in coal consumption, but wouldn’t necessarily be affected by a decrease in coal production (tightening regulations would still be good for this company). They are currently slightly overpriced after an overnight spike on Thursday, but if the price decreases in the near future we will acquire a position.