NEW YORK, NY -- (Marketwire) -- 11/04/11 -- While the Coal Industry has taken a beating in recent months regarding global economic worries and difficulty competing with low natural gas prices, most analysts argue that the coal market is set to explode. Coal demand is projected to increase significantly over the next 25 years due to the growth in industry and infrastructure in emerging markets which could benefit companies in the industry such as Arch Coal and Alpha Natural Resources. The Bedford Report examines the outlook for companies 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:
Sterne Agee analyst Michael Dudas said in a note to clients that recent earnings reports from coal companies show that demand has been stronger than expected. That is raising hopes that coal prices will stay firm, and deliver better profits to companies that mine and sell coal.
The analyst noted that inventories of coal are not piling up -- considered the first sign that demand is dropping. He said monthly coal inventories have fallen for five straight months and are now 13 percent lower than 2010 levels.
The Bedford Report releases market research on the coal industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.bedfordreport.com and get exclusive access to our numerous analyst reports and industry newsletters.
Arch Coal Inc. said last week that third-quarter profit fell well short of expectations, partly because of a mine closure and Midwest flooding. In the quarter, Arch's coal shipments fell 9 percent, but average selling prices rose, helping the company boost revenue to $1.20 billion from $874.7 million a year ago. Analysts expected $1.19 billion. Foreign demand for coal used in steel-making has helped lift the fortunes of coal producers and freight railroads. Arch said it shipped more metallurgical coal and got higher prices for each ton.
Alpha Natural Resources is a supplier and exporter of metallurgical coal for use in the steel-making process and a major supplier of thermal coal to electric utilities and manufacturing industries across the country.
The Bedford Report provides Market Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. The Bedford Report has not been compensated by any of the above-mentioned publicly traded companies. The Bedford Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at http://www.bedfordreport.com/disclaimer
The Bedford Report