This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
TheStreet Open House

James River Coal Rises Following Analyst Upgrade

NEW YORK (AP) â¿¿ Shares of James River Coal Co. rose Monday after a Raymond James analyst upgraded the coal producer, saying he thinks the stock will trade higher this winter as natural gas prices rise.

A glut of natural gas in the U.S. and the resulting drop-off in price caused many utilities to switch to gas from coal this year. But higher gas prices could help increase demand for coal again.

THE SPARK: Analyst James Rollyson raised his rating on the shares to "Outperform" from "Market Perform" and set a $3 price target on them.

THE BIG PICTURE: The Richmond, Va., company and its competitors have been hurt by weaker demand for both coal used to generate power and coal used in steel manufacturing. James River Coal took a loss in the third quarter, saying coal sales fell about 9 percent and its expenses grew.

Coal shares fell steeply in the first half of the year, but many got a boost in the run-up to the presidential election on hopes that a Mitt Romney administration would loosen mine safety and pollution rules that make it more costly for them to operate. Shares have given back much of those gains since President Barack Obama was re-elected.

THE ANALYSIS: In a note to investors Monday, Rollyson said that James River should benefit from slower growth in the supply of natural gas, which may lift gas prices, thus increasing demand for coal. Winter weather may also drive up demand for coal from utilities.

SHARE ACTION: Most coal stocks slumped Monday afternoon, but James River Coal shares rose 23 cents, or 9 percent, to $2.72. The stock is down by nearly half since Election Day, and has dropped 64 percent this year.

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,805.41 +127.51 0.76%
S&P 500 1,964.58 +13.76 0.71%
NASDAQ 4,483.7150 +30.9230 0.69%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs