Patriot Coal and Alpha Natural Resources Prepare for Downturn in Demand
February 09 2012 - 8:20AM
Marketwired
Shares of companies in the coal industry have lagged in the market
in 2012. Several miners are expected to reduce production further
this year as demand falls in the U.S. and Europe, Dahlman Rose
analyst Daniel Scott explained in a recent research note to
investors. Scott said the production cuts are "necessary given
current conditions." Five Star Equities examines investing
opportunities in the coal industry and provides equity research on
Patriot Coal Corporation (NYSE: PCX) and Alpha Natural Resources,
Inc. (NYSE: ANR). Access to the full company reports can be found
at:
www.fivestarequities.com/PCX www.fivestarequities.com/ANR
Analysts such as Dahlman's Daniel Scott argue that Europe will
need less U.S. coal as its economy struggles through a deep
financial crisis. Meanwhile, with natural gas prices near ten year
lows, North American Utilities companies are expected to rely more
on abundant natural gas.
Citigroup analyst Anthony Yuen argues that natural gas prices
could resume falling, spurring even more utilities to switch from
coal to gas for power generation. Yuen said several factors could
keep pushing gas prices down, including strong production and mild
winter weather.
Five Star Equities releases regular market updates 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.fivestarequities.com and get
exclusive access to our numerous stock reports and industry
newsletters.
Last week, Alpha Natural Resources reported that production will
be reduced at some of its operations in central Appalachia due to
decreased demand. When completed, the company says the adjustments
are expected to reduce annual coal production by approximately 4
million tons.
Patriot Coal cut its 2012 production estimate to between 27
million and 29 million tons -- down from 31 million tons in 2011.
The company said the production cuts were "in response to weaker
market demand."
Five Star Equities 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. Five Star Equities has not been compensated by any of the
above-mentioned companies. We act as an independent research portal
and are aware that all investment entails inherent risks. Please
view the full disclaimer at:
www.fivestarequities.com/disclaimer
Add to Digg Bookmark with del.icio.us Add to Newsvine
Contact: Five Star Equities Email Contact
Patriot Coal Corp. (NYSE:PCX)
Historical Stock Chart
From Jun 2024 to Jul 2024
Patriot Coal Corp. (NYSE:PCX)
Historical Stock Chart
From Jul 2023 to Jul 2024