I Know First Review: NRP Rise Along With Commodities

I Know First Review

Natural Resource Partners L.P. (NRP)

On September 9, 2016, the I Know First algorithm gave a bullish signal of 89.73 for the ticker NRP with a predictability indicator of .58. In accordance with the I Know First algorithm, NRP developed into a quick win with an 60.00% return in only 1 Month.

Natural Resource Partners L.P. (NRP) is a diversified natural resource company that owns interests in coal, oil, aggregates and industrial minerals across the United States. A large percentage of NRP’s revenues are generated from royalties and other passive income. In addition, NRP owns an equity investment in Ciner Wyoming, a trona/soda ash operation and owns VantaCore, a construction aggregates business, making NRP one of the top 25 aggregates producers in the United States.

In the 1 month time period, Natural Resource Partners share value increased by 60.00% as a result of continued commodity price increase from coal and oil.  China, the largest consumer and producer of coal, has been restricting its output of coal to stabilize the market.  In late September, Citi state's China's Transport Ministry introduced land transportation restrictions to curb freight overloading.  Not only did this restrict the availability of the commodity to be introduced into the market, but it also increased freight cost.  As a result, the price for coal increased. This benefited NRP to receive higher revenue from the royalties earned in coal mined from their properties.  Thus, the company reported increasing net income and profit margin.

Oil increased in price as well. During the one month period, the U.S. Energy Information Administration surprised the market by reporting crude supplies slipped 14.51 million barrels instead of expected gain in inventory by the end of Sept. 2nd week.  This resulted in the price of oil to increase by 3.52%.  In another event, for the first time in eight years, OPEC reached an agreement to lower its output to reduce the supply of oil.  This resulted in oil to continue its upward trend into the $50 per barrel price range.  These factors improved NRP's financial health. The 60.00% increase in stock price was in accordance with the I Know First algorithm's prediction.

Before making any trading decisions, consult the latest forecast as the algorithm constantly updates predictions daily. While the algorithm can be used for intra-day trading the predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.