Coal Stock Losers: Arch, Peabody, Consol

NEW YORK (TheStreet) -- Coal stocks are entering the week on shaky ground, after they plunged Friday on numerous concerns, ranging from recent coal company earnings reports, uncertainty over China's lending policies as well as growing competition from reasonably-priced natural gas and wind energy sources.

Arch Coal (ACI) stock tanked Friday after the company reported fourth quarter earnings per share that missed consensus estimates by 16 cents and provided 2010 guidance that fell far below Wall Street forecasts. Arch Coal ended Friday's trading session down 14.1% at $21.10. Adding to its woes is Arch Coal's bad coal hedge position and current weakness in the Powder River Basin market. The Powder River Basin is a region in Wyoming and Montana and is the largest source of coal reserves in the US.

About 15 million shares of Arch Coal traded hands Friday. The three-month average daily trading volume for the stock is about 5 million.

Peabody Energy(BTU) ended the trading session down 7% at $42.10 after the company on Tuesday said its fourth quarter earnings fell 68%. Peabody said higher expected seaborne metallurgical and thermal coal prices are anticipated to benefit Peabody's results beginning in the second quarter. The company adds that first quarter 2010 EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is expected to be approximately in line with the fourth quarter of 2009.

Peabody Energy on Wednesday declared a regular quarterly dividend on its common stock of 7 cents per share. The coal company's board of directors on Thursday approved the upgrade and expansion of the Metropolitan Mine in New South Wales, Australia. The expansion is expected to increase capacity by 1 million tons within several years. Capital investments for the expansion are expected to total $70 million, of which approximately $15 million is targeted for 2010.