Why Coal Stocks Have been racing Right now

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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