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Here's a section of an interesting article in today's edition of The Bull about Coal Stocks.

Bandanna Energy Limited (BND) is a Queensland-based thermal coal explorer and developer in the Bowen and Galilee basins. Bandanna has a 14% interest in the Wiggins Island Coal Export Terminal at Gladstone.

The main attraction of this stock is its 100% ownership in five shale oil tenements in the region, although there is little information about the size and scope of the tenements. The company is a classic example of the risk of investing in speculative penny stocks. The share price rose from pennies per share to a high of $2.00 per share in late 2011 and has since retreated to $0.47.

However, if you have a fondness for rolling the dice, this company’s shale oil assets make this a stock to watch. In March 2013 the company was downgraded to NEUTRAL from BUY by UBS in light of concerns about the company’s ability to fund future operations. Credit Suisse expressed the same concern, but reiterated its BUY rating in the belief a JV partner can be found. Credit Suisse thinks the company is undervalued.