We are maintaining our Buy recommendation on Arch Coal and increasing our 2008 earnings estimate from $2.37 per share to $2.64 per share. With international and domestic coal prices at record levels, Arch s market driven strategy should help maximize its reserve base. Having significant unpriced volumes of 60% and 77% in 09 and 10, respectively and recently pricing several million tons of 2008 unpriced production at significant premiums to Q1 08 prices, we feel that ACI will experience significant earnings growth in the near term. Additionally, In Central Appalachia, nearly one third of its 2008 estimated production is metallurgical in nature. This type of coal fetches prices in the triple digits and should boost earnings and cash flow. We see very little downside to the company s story with large near term upside potential. by Zacks http://astuk-virtuallystocks.blogspot.com/