Dennis Gartman May Get Bullish On Coal

A market pundit says he may get bullish on coal.

"We know that coal is the fuel of the past and we know that it is being replaced every day by 'cheap' natural gas," said Dennis Gartman, who edits the Gartman Letter.

"But the world needs coal and coal as the largest fuel for electricity is not going to change" in the short term, according to Gartman.

"We may soon turn bullish of the coal stocks and of coal ETFs... sooner rather than later. 'Ol King Coal indeed!" Gartman said.

The Market Vectors-Coal ETF (NYSE: KOL) is off about 26 percent in the past 12 months and traded recently at $13.85, down 1.2 percent on the day.

Coal futures contracts are currently trading sharply lower than the expected spot price at their maturities, according to Gartman.

"Our interest is piqued," Gartman said, although he added that he "remains on the sidelines" with regard to coal.

A year ago, Gartman said he cut his equity position to almost zero and went with nearly 100 percent cash and gold.