Date updated:03-17-2007
From Barron's 3-19-07
S. Basu Mullick is the manager at Neuberger Berman Partners fund. Mullick, who teaches portfolio management at New Jersey's Rutgers university, left PaineWebber in 1986 to join First Fidelity Bank as a portfolio manager. Two years later, he became a portfolio manager at John A. Levin, and in 1992 joined Omega Advisors to run a hedge fund. Chafing under the demand for short-term performance, he moved to Ark Asset Management and then, in 1998, to Neuberger Berman.
Mullick has three criteria for selling stocks. Either the fundamental investment case changes; a stock reaches his price objective; or it drops 30% and he is unwilling to double down.
In this article he expresses his views on coal stocks and how the majority of them look oversold.

-
BTU
Peabody Energy Co - $44.56
- -3.13%
- $44.11
From Barron's 3-19-07 Coal producer Peabody Energy (BTU), another holding, has taken a pounding of late. Two warm winters and the ready availability of nuclear and hydro power have depressed coal prices, while inventories have built. Peabody is the largest, most diversified producer of coal, the cheapest and most abundant source of baseload power. Mullick's take: "Peabody remains undervalued at a 10-year-low P/E," says Mullick, who bought the stock at 18 and thinks it could trade up to 55, from 38 now.

-
JOYG
Joy Global Inc. - $53.52
- -3.46%
- $52.66
From Barron's 3-19-07 A weak coal market also has made Joy Global (JOYG) a bargain, according to Mullick, who believes the leader in surface- and underground-mining equipment, particularly for coal, is well positioned to benefit from operating leverage. Double-digit revenue growth will be driven by a solid backlog, he says, and cash flow is likely to exceed earnings per share, which should continue to grow by 20% or more. Joy is returning cash to shareholders, he notes, with a $1 billion stock repurchase program. The stock has dropped more than 10 points since Feb. 23, to around 42.

-
NE
Noble Corp (new) - $41.21
- -2.23%
- $40.30
From Barron's 3-19-07 Another pick, Noble (NE) also has been on a roller-coaster ride, falling from 73.58 on Feb. 26 to 67.74, before bouncing back to about 74; Mullick bought the shares at 71. The offshore driller's valuation is at a 10-year low. "Clearly, the expectation is for energy services to have negative earnings revisions, but in the case of Noble, the market seems to have overdone it," he says. "We think stock has a fair value of $100-plus."
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A. any forward growth guidance you get from
a company has to be taken with a grain
of salt. dubai was not news 2 days ago,
yesterday it clipped the s n p for 20
points. these are turbulent times and
all forward statements are a guess. 5
year ones are a joke. we've had a really
nice upternd for the last 8 months, that
may be coming to and end or at the very
least its probably gonna get choppy.
you're gonna have to be the judge of the
reliability of any future estimates and
any one stock can have multiple guesses
at theirs.
A. The only one I own : SLX,
too hard pick a winner out all of them
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