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 expect coal, copper, and iron ore prices to remain below long-term averages as China continues to shift away from an investment-led economy.
We think Cloud Peak is the best way to play a rebound in PRB coal prices.
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.
If they mind the pitfalls, individual investors can get a distinct advantage over large money managers in the small-cap arena.
The Chinese fixed-asset problem plaguing iron ore and soon copper will not be solved by cutting interest rates.
Looser credit conditions or fiscal stimulus may temporarily boost China's demand for coal, copper, and iron ore, but the bounce would be fleeting.
Morningstar's Matt Coffina looks back on some recent missed opportunities and what he learned from them--also, a couple of stocks he's glad he avoided.