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Stock Market & Financial Investment News

News Breaks
July 8, 2014
11:38 EDTWLT, ANR, ACI, WLBCoal producers retreat after Morgan Stanley lowers price forecast
Shares of some coal producers are falling after Morgan Stanley reduced its price targets on several names in the sector. WHAT'S NEW: Morgan Stanley analyst Evan Kurtz warned that metallurgical coal prices may rebound more slowly than the firm had previously expected. The firm's commodity forecasters reduced their outlook for met coal prices to $133 from $160 per ton in 2015, Kurtz reported. Chinese imports have been weak so far this year, as exports to that country from Australia have risen, the analyst explained. However, production cuts should still help prices rise next year, Kurtz stated. Nonetheless, he cut his price target on Walter Energy (WLT) to $16 from $26, on Alpha Natural (ANR) to $4 from $5 and on Arch Coal (ACI) to $2 from $3. He kept an Overweight rating on Walter Energy, an Equal Weight rating on Alpha Natural and an Underweight rating on Arch Coal. COMPANY NEWS: In addition to the analyst opinion, two of the companies in the sector, Walter Energy and Westmoreland Coal (WLB), announced news this morning. Walter Energy announced that it has commenced a private offering of $320M aggregate principal amount of 9.5% senior secured notes due 2019. Walter also disclosed in a regulatory filing earlier that its preliminary metallurgical coal production for Q2, including both hard coking coal and low-volatility pulverized coal injection product, was 2.5M metric tons, and that its preliminary metallurgical coal sales for Q2 was 2.7M metric tons. Additionally, Walter noted that it incurred severance charges of approximately $7M in Q2 in connection with the idling of its mines in Canada. For its part, Westmoreland disclosed in a regulatory filing that the company currently anticipates reporting adjusted EBITDA in the range of $35M-$38M for the three months ended June 30. WHAT'S NOTABLE: On June 20, another research firm, Sterne Agee, recommended that risk-tolerant investors buy Alpha Natural. The firm predicted that the company would benefit from normalizing thermal and metallurgical coal prices. According to Sterne Agee, the market was underestimating several of Alpha Natural's positive catalysts. PRICE ACTION: In late morning trading, Walter Energy sank 5.4% to $5.82, Alpha Natural gave back 7.2% to $3.37, Arch Coal retreated 5.2% to $3.22, and Westmoreland sank 5% to $34.97.
News For WLT;ANR;ACI;WLB From The Last 14 Days
Check below for free stories on WLT;ANR;ACI;WLB the last two weeks.
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July 28, 2014
07:20 EDTWLBWestmoreland price target raised to $50 from $38 at Brean Capital
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05:58 EDTWLBWestmoreland price target raised to $50 from $40 at Imperial Capital
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July 25, 2014
07:09 EDTWLBWestmoreland reaffirms FY14 adjusted EBITDA outlook $172M-$190M
07:08 EDTWLBWestmoreland Coal reports Q2 EPS ($4.19), one estimate ($1.15)
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July 21, 2014
16:19 EDTACIArch Coal idles Cumberland River coal complex, eliminates 213 full-time jobs
Arch Coal announced that it is idling the Cumberland River Coal Company complex. The Cumberland River complex comprises two underground operations and related facilities. 213 full-time positions will be eliminated by idling Cumberland River. "With this move, we are actively responding to currently challenged metallurgical coal markets while striving to enhance our overall competitive cost position in Appalachia," said John Eaves, Arch's president and CEO. "Our strategy is to increasingly shift our portfolio toward higher-margin, lower-cost metallurgical coal operations, while retaining our valuable reserves for when market conditions strengthen in the future."
July 16, 2014
12:07 EDTWLBLonestar Partners reports 5.4% passive stake in Westmoreland Coal

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