Arch Coal and Alpha Natural Resources Shares Rally on Improving Coal Demand
August 14 2012 - 8:20AM
Marketwired
Better than expected second quarter earnings from James River Coal
sparked a rally in coal stocks Thursday. "The thermal market is
just beginning to show signs of recovery," said James River Coal's
Chairman and CEO Peter Socha. "We believe that this is due to
production cutbacks throughout the industry as well as improved
demand for both coal and natural gas due to warmer than normal
temperatures." The Paragon Report examines investing opportunities
in the Coal Industry and provides equity research on Arch Coal Inc.
(NYSE: ACI) and Alpha Natural Resources, Inc. (NYSE: ANR).
Access to the full company reports can be found at:
www.ParagonReport.com/ACI
www.ParagonReport.com/ANR
As the demand for coal has dropped significantly in the U.S. as
a result of plummeting natural gas prices, coal companies have
begun to look at foreign markets. The economies of India and China
are still heavily on coal for their power generation. According to
a recent Forbes article the latest reported data has shown that
during the first half of 2012 China has seen coal imports rise to
140 million tons, a 66 percent year-over-year growth. India's
thermal coal imports are expected to total 80 million tons in
FY2012-2013. Asia's combined thermal coal demand is projected to be
around 550 million tons.
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Industry so investors can stay ahead of the crowd and make the best
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Arch Coal's core business is supplying cleaner-burning,
low-sulfur thermal and metallurgical coal to power generators and
steel manufacturers on five continents. The company reported a net
loss of $436 million, or $2.05 per diluted share, in the second
quarter of 2012. Shares of Arch Coal have rallied over 22 percent
in the last month.
Alpha is the nation's largest supplier of metallurgical coal
used in the steel-making process and is a major supplier of thermal
coal to electric utilities and manufacturing industries. In 2011,
the company had more than 200 customers on five continents. The
company reported a second quarter loss of $2.2 billion, compared
with a loss of $50 million in the second quarter of 2011.
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