This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Coal Winners and Losers: Alpha Natural Resources

The Alpha Natural Resources (ANR) acquisition of Foundation Coal (FCL) will create the nation's third largest coal producer, a consolidation that will help the sector as economies of size and synergies will drive efficiency, said an analyst on Tuesday.

Alpha Natural Resources said Tuesday it plans to buy Foundation Coal for about $1.4 billion in stock. Foundation Coal shares soared $4.76, or 21%, to $28.01 in afternoon trading, while shares of Alpha slid $1.88, or 6.5%, to $26.95.

Bill Burns, an analyst with Johnson Rice & Co., said that consolidation, especially in central Appalachia, is viewed as good, and pointed to some other signals for possible long-term sector recovery.

"The general feeling is that (the China stimulus package) is working a lot better than the U.S. stimulus package," Burns said. If China's economy recovers, this could translate to a material turnaround for manufactured imports and in turn, help the coal sector rebound.

In the near future, the industry continues to struggle against the lack of demand for electricity and hefty inventory levels, Burns said.

"Coal production in the U.S. is down quite a bit, but the demand for it is down a little more," he noted, adding that, on the bright side, steel companies have reached a more manageable level of inventories, though levels could be lower.

By mid-afternoon, coal stocks were mostly trading slightly higher. James River Coal (JRCC) shares gained $1.09, or 5.%, to $21.24. Shares of Walter Energy (WLT) rose 88 cents, or nearly 3%, to $30.98. Shares of Arch Coal (ACI) climbed 52 cents, or 3%, to $18.30.
Copyright 2009 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
JRCC $0.00 0.00%
WLT $0.00 0.00%
ANR $0.04 3.17%
TSLA $143.24 -3.40%
YHOO $27.11 1.10%


Chart of I:DJI
DOW 15,904.98 -109.40 -0.68%
S&P 500 1,859.57 +7.36 0.40%
NASDAQ 4,306.9410 +38.1780 0.89%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs