Alpha Natural, Walter Energy -1.5% premarket as Cowen cuts coal names


Cowen downgrades Alpha Natural Resources (ANR), Teck Resources (TCK) and Walter Energy (WLT) to Market Perform from Outperform, believing improved sentiment in the coal markets (particularly thermal) has led stocks significantly ahead of fundamental improvement.

The firm thinks investors may migrate to Peabody Energy (BTU) based on favorable exposure to international met operations and an improving PRB market, but see it also near fair value; it favors thermal-focused names Cloud Peak (CLD) and Alliance Resource Partners (ARLP).

ANR -1.5%, TCK -0.8%, WLT -1.5% premarket.

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Comments (12)
  • nemonemo
    , contributor
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    Shorts are shit scared due to extreme cold.
    9 Jan 2014, 09:06 AM Reply Like
  • Blue Horshoe love Anacot Steel
    , contributor
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    i am scratching my head. i would have thought movement in the stocks that were downgraded had more to do with optimism over met coal, especially since Walter has no significant exposure to thermal coal. met coal does look weak, but the downgrade is not related to met coal... dumbfounded
    9 Jan 2014, 09:11 AM Reply Like
  • nemonemo
    , contributor
    Comments (338) | Send Message
     
    So dumb. ANR earns more than 60% from met coal. ANR has shale assets worth 1.5B. WTF. WTF. They sold 30% of shale assets to Rice for $100M cash and 25% stake in the company. Company is expected to become worth almost 2B as per founder who are famous blackrock fund manager.
    9 Jan 2014, 09:18 AM Reply Like
  • Blue Horshoe love Anacot Steel
    , contributor
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    ridiculous. anyway. pt of 7 on anr and 15 on wlt. nothing to freak about. both will end the day even or slightly higher. this should be final leg to washout.
    9 Jan 2014, 09:30 AM Reply Like
  • 6151621
    , contributor
    Comments (1172) | Send Message
     
    At this point that would be amazing if they finished flat since they are down more than 4% currently.

     

    @NG down 4.6% so that would likely hit thermal coal. Met coal is likely related to poor China numbers.
    9 Jan 2014, 02:25 PM Reply Like
  • Blue Horshoe love Anacot Steel
    , contributor
    Comments (286) | Send Message
     
    yeah i was totally wrong. SA seems to have gotten bad info. downgrade seems to be related more to weak met coal fundamentals than thermal, from what i have read. in any event, cowan seems like they have jumped on the bandwagon a bit late as $ANR and $WLT have gotten obliterated in the last week or so.
    9 Jan 2014, 04:44 PM Reply Like
  • nemonemo
    , contributor
    Comments (338) | Send Message
     
    God save Main street from Dumb Fcuks of Wallstreets.
    9 Jan 2014, 09:19 AM Reply Like
  • wil3714
    , contributor
    Comments (2330) | Send Message
     
    1-2% nonevent
    9 Jan 2014, 09:30 AM Reply Like
  • BermudaHigh
    , contributor
    Comments (570) | Send Message
     
    The downgrading and then whacking of the coal stocks is getting pretty old. This is obvious bottoming action.
    9 Jan 2014, 10:04 AM Reply Like
  • vireoman
    , contributor
    Comments (1255) | Send Message
     
    How about this......Cowen "favors thermal-focused names Cloud Peak." CLD is now DOWN 3.7%.
    9 Jan 2014, 11:37 AM Reply Like
  • toomuchgas
    , contributor
    Comments (1019) | Send Message
     
    It's way to late to sell any of the coal names.
    9 Jan 2014, 03:03 PM Reply Like
  • Coalfan
    , contributor
    Comments (116) | Send Message
     
    Who is Cowen and who cares what they say?
    9 Jan 2014, 03:49 PM Reply Like
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