Which coal companies to buy stock

Screening Filters

1. Industry = Coal

   • Purpose: Limit results strictly to companies operating in the coal industry.
   • Rationale:
     • Your question is specifically about coal companies’ stocks, so the most important step is to exclude all non-coal businesses (e.g., metals, oil & gas, utilities, etc.).
     • This filter ensures every company in the results primarily derives its business from coal-related activities (mining, processing, or coal-focused operations).

2. Market Cap ≥ $50,000,000

   • Purpose: Exclude extremely small and micro-cap companies.
   • Rationale:
     • Very small companies (often under $50M market cap) can be highly illiquid, extremely volatile, and more vulnerable to manipulation or sudden business risk.
     • By setting a minimum size, the screener focuses on coal companies that are at least somewhat established and more likely to have better disclosure, analyst coverage, and institutional interest—more suitable for consideration as investments rather than pure speculation.

3. Monthly Average Dollar Volume ≥ $20,000

   • Purpose: Ensure the stocks trade with minimum acceptable liquidity.
   • Rationale:
     • Dollar volume = share price × number of shares traded. A minimum of $20,000 per month weeds out stocks that barely trade.
     • Illiquid stocks can be hard to buy or sell without moving the price significantly; bid-ask spreads can also be very wide.
     • This filter improves your ability to realistically enter and exit positions in the coal stocks you’re considering.

4. Net Margin ≥ 0.0000001 (i.e., Positive Net Margin)

   • Purpose: Focus on coal companies that are at least marginally profitable.
   • Rationale:
     • Net margin measures how much profit a company makes as a percentage of revenue. Requiring a positive net margin removes companies that are currently losing money.
     • In a cyclical and politically sensitive industry like coal, profitable companies may be better positioned to survive downturns, handle regulatory costs, and invest in operations.
     • This aligns with a more conservative approach to “stocks to consider buying,” prioritizing companies that are currently operating in the black.

Why the Results Match Your Question

• The industry filter ensures all results are coal companies, directly matching your sector focus.
• The market cap and liquidity (dollar volume) filters refine the list to coal stocks that are more practical to invest in, avoiding the riskiest, hardest-to-trade names.
• The positive net margin filter increases the chance that the coal companies shown are financially healthier and more viable candidates for consideration.

Together, these filters don’t guarantee good investments but provide a sensible, investable subset of coal companies for you to analyze further.