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Alliance Resource Partners L.P. (ARLP, rated BUY)
By Kate Stalter Posted 05/28/2009 02:13 PM ET Alliance Resource Partners (ARLP), which mines and markets coal to U.S.-based customers, was among stocks moving up in heavy volume Wednesday. It’s from the No. 26-ranked Energy-Other industry group. Earnings grew 70% in the most recent quarter. That followed a series of year-over-year earnings declines. You’d like to sales grow at a better rate. Most recently, revenue was up 16%. Alliance is a small cap that trades only 95,000 shares per day. That’s extremely thin. Such thin trade increases the risk of volatility. Return on equity is good, at 44%. Alliance has an Up/Down Volume Ratio of 1.5, indicating heavy demand recently. It has a strong Composite Rating, 95. Chart Analysis The stock rallied out of a cup-with-handle pattern (Point 1). It rallied less than 20% from its buy point before pulling into a new correction (Point 2). Currently, it may be shaping a flat base. That formation takes shape over at least five weeks, and corrects less than 15% within itself. Stock Checkup Alliance Resource Partners has a Composite Rating of 95. There’s a lot of strength in the 75-member Energy-Other group, so Alliance only notches the 12th-best Composite Rating. Its SMR Rating, which measures sales, profit margins and return on equity, is the group’s eighth highest.
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