Alpha Natural Resources, Inc.
(Alpha) is a supplier and exporter of metallurgical coal for use in the
steel-making process and a supplier of thermal coal to electric utilities and
manufacturing industries across the country. As of December 31, 2011, it
operated 145 mines and 35 coal preparation plants in Northern and Central
Appalachia and the Powder River Basin. The Company operates in two segments:
Eastern Coal Operations and Western Coal Operations. Eastern Coal Operations
consists of the mines in Northern and Central Appalachia, its coal brokerage
activities and its road construction business. Western Coal Operations consists
of two Powder River Basin mines in Wyoming. During the year ended December 31,
2011, it sold a total of 106.3 million tons of coal. On June 1, 2011, it completed
its acquisition (the Massey Acquisition) of Massey Energy Company (Massey). The
Company acquired a 50% interest in a joint venture in the Massey Acquisition.
Alpha Natural Res (NYSE:ANR) is
+0.99 - +16.75% from the previous close of $5.91. It traded between $6.06 -
6.94 with total traded volume of 37801624 shares. Keep a close eye on ANR, as
the stock has been showing unusual moves over the past weeks. At Current market
price, ANR has recovered +30.68% from its 52-week Low of 5.28 and has Pulled back
-77.71% from its 52-week high of 30.96. Alpha Natural Resources ANR +16.75% the largest U.S. supplier of
metallurgical coal for making steel, rallied 16.8% as the No. 1 performer in
the S&P 500 Index. Even with the gain, the stock is still down about 28% in
the past three months.
Can ANR Continue To
Jump? Find Out Here
The big news of the day is that China
approved a $156 billion infrastructure plan that will boost demand for
metallurgical steel. Most of the projects are steel-intensive, and China is one
of the major trading partners of the coal industry.Arch Coal also said it's
reducing its capital spending on thermal mines and will proceed with
metallurgical mine projects.The news out of China is big, but I wouldn't call a
recovery for coal stocks yet. Metallurgical coal may rebound, but thermal coal
is still a drag on these stocks, and most are posting losses each quarter.
Until that situation turns around, I would steer clear of a big bet in coal.
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