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Arch Coal (ACI) cuts FY11 EPS guidance to $1.00-1.40 from $1.75-$2.15, with EBITDA at $900M-$1B...

Arch Coal (ACI) cuts FY11 EPS guidance to $1.00-1.40 from $1.75-$2.15, with EBITDA at $900M-$1B representing the highest level in company history but below previous guidance. The company blames the downward revisions on lost metallurgical coal production at its Mountain Laurel complex. ACI -10% AH.
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Comments (2)
  • tunaman4u2
    , contributor
    Comments (3366) | Send Message
     
    This is epic, cya later coal on Monday.
    30 Sep 2011, 05:01 PM Reply Like
  • capital pains
    , contributor
    Comments (219) | Send Message
     
    Assuming the world won't end anytime soon (Unless Goldman is holding credit default swaps betting it will), ACI has not been at this depressed level since the '08-'09 market debacle.
    Needless to repeat the fact that commodities and energy were decimated with last quarter's horrendous market declines. Coal stocks have been pummeled, plain and simple.
    Hence, this is the time to be buying ACI and BTU. ACI will undoubtedly miss in its impending third quarter announcement. The news of the reduced estimates would have blasted the stock in October anyway. The blow has now been softened. I believe that ACI
    is an excellent long term buy here. It's going to take a while for the company to realize a fruitful synergy with its ICO acquisition.
    The coal supercycle will rise again. Met prices will improve. Thermal
    is holding its own. Obama is weak and does not have the support in congress to punish the coal industry.China and India will rev up again and take coal prices up again.
    ACI pays a handsome dividend. When the dust clears and the world regains its footing, ACI will be back to its pervious $28 high. Along with the ACI buy and hold, BTU is a strong buy here. The BTU stock price is ridiculously low and represents a compelling buy.
    Coal remains the world's engine.
    1 Oct 2011, 12:14 PM Reply Like
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