Scott said he believes earnings for coal companies will bottom out in 2010.
Shares of Alpha fell $2.62, or 9.4 percent, to $25.33. Foundation shares dropped $2.76, or 9.4 percent, to $26.75. Patriot Coal shares tumbled $1.36, or 13 percent, to $9.08.
Elsewhere in the sector, Scott maintained "Buy" ratings for Arch Coal Inc., Peabody Energy Corp., Consol Energy Inc., Massey Energy Co. and Walter Energy Inc.
Shares of Arch Coal slipped $1.35, or 7.4 percent, to $16.80. Peabody shares dropped $1.92, or 6 percent, to $30.13. Shares of Consol fell $3.10, or 7.8 percent, to $36.69. Massey shares slid $1.56, or 7.5 percent, to $19.29. Shares of Walter Energy dropped $2.28, or 7.2 percent, to $29.29.Meanwhile, the broader market slid on news of continued job market weakness and regional Fed data that showed contracting manufacturing conditions in the U.S. mid-Atlantic region.