The coal miner has the financial flexibility to cope with low natural gas prices.
Its position in the Powder River Basin gives the firm a narrow moat.
We think Cloud Peak is the best way to play a rebound in PRB coal prices.
We expect coal, copper, and iron ore prices to remain below long-term averages as China continues to shift away from an investment-led economy.
Looser credit conditions or fiscal stimulus may temporarily boost China's demand for coal, copper, and iron ore, but the bounce would be fleeting.
The Chinese fixed-asset problem plaguing iron ore and soon copper will not be solved by cutting interest rates.
Starting from current valuations, stocks simply aren't capable of delivering double-digit annualized total returns, says Morningstar's Matt Coffina.
Basic materials companies are in a period of very mixed near-term outlook in terms of end-market demand.
Lower commodity prices and a break-up of the European potash cartel have weighed on basic materials stocks year-to-date.
Improved demand should underpin stronger potash and PRB coal markets in 2014.