Seeking Alpha

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.
Comments (12)
  • Shorts are shit scared due to extreme cold.
    9 Jan, 09:06 AM Reply Like
  • 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, 09:11 AM Reply Like
  • 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, 09:18 AM Reply Like
  • 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, 09:30 AM Reply Like
  • 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, 02:25 PM Reply Like
  • 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, 04:44 PM Reply Like
  • God save Main street from Dumb Fcuks of Wallstreets.
    9 Jan, 09:19 AM Reply Like
  • 1-2% nonevent
    9 Jan, 09:30 AM Reply Like
  • The downgrading and then whacking of the coal stocks is getting pretty old. This is obvious bottoming action.
    9 Jan, 10:04 AM Reply Like
  • How about this......Cowen "favors thermal-focused names Cloud Peak." CLD is now DOWN 3.7%.
    9 Jan, 11:37 AM Reply Like
  • It's way to late to sell any of the coal names.
    9 Jan, 03:03 PM Reply Like
  • Who is Cowen and who cares what they say?
    9 Jan, 03:49 PM Reply Like
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