SOURCE: The Bedford Report

The Bedford Report

November 04, 2011 08:16 ET

Arch Coal and Alpha Natural Resources Benefit From Stronger Than Expected Coal Demand

The Bedford Report Provides Investment Research on Arch Coal & Alpha Natural Resources

NEW YORK, NY--(Marketwire - Nov 4, 2011) - While the Coal Industry has taken a beating in recent months regarding global economic worries and difficulty competing with low natural gas prices, most analysts argue that the coal market is set to explode. Coal demand is projected to increase significantly over the next 25 years due to the growth in industry and infrastructure in emerging markets which could benefit companies in the industry such as Arch Coal and Alpha Natural Resources. The Bedford Report examines the outlook for companies in the coal industry and provides equity research on Arch Coal, Inc. (NYSE: ACI) and Alpha Natural Resources, Inc. (NYSE: ANR). Access to the full company reports can be found at:

Sterne Agee analyst Michael Dudas said in a note to clients that recent earnings reports from coal companies show that demand has been stronger than expected. That is raising hopes that coal prices will stay firm, and deliver better profits to companies that mine and sell coal.

The analyst noted that inventories of coal are not piling up -- considered the first sign that demand is dropping. He said monthly coal inventories have fallen for five straight months and are now 13 percent lower than 2010 levels.

The Bedford Report releases market research on the coal industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at and get exclusive access to our numerous analyst reports and industry newsletters.

Arch Coal Inc. said last week that third-quarter profit fell well short of expectations, partly because of a mine closure and Midwest flooding. In the quarter, Arch's coal shipments fell 9 percent, but average selling prices rose, helping the company boost revenue to $1.20 billion from $874.7 million a year ago. Analysts expected $1.19 billion. Foreign demand for coal used in steel-making has helped lift the fortunes of coal producers and freight railroads. Arch said it shipped more metallurgical coal and got higher prices for each ton.

Alpha Natural Resources is a supplier and exporter of metallurgical coal for use in the steel-making process and a major supplier of thermal coal to electric utilities and manufacturing industries across the country.

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