SOURCE: The Bedford Report

The Bedford Report

November 04, 2011 08:16 ET

Bullish Sentiment for Patriot Coal and Peabody Energy Resumes

The Bedford Report Provides Investment Research on Patriot Coal & Peabody Energy

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 Peabody Energy Corporation and Patriot Coal Corporation. The Bedford Report examines the outlook for companies in the coal industry and provides equity research on Patriot Coal Corporation (NYSE: PCX) and Peabody Energy Corporation (NYSE: BTU). 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 like Peabody Energy Corp. 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.

Peabody Energy said that its third-quarter earnings climbed 22 percent and demand for coal is still rising for power generation in Asia and Europe. Earlier this year Peabody signed an agreement to develop a huge Chinese surface mine expected to produce 50 million tons of coal a year for decades. The coal producer predicted strong results for the rest of 2011, as it undertakes what it called its biggest global expansion in its 128-year history.

Patriot reported a net loss of $49.5 million, or 54 cents per share, for the three months ended Sept. 30. That compares with a loss of $46 million, or 51 cents per share, a year ago. The earnings beat Wall Street estimates while revenue was short. Analysts had expected a loss of 57 cents per share on revenue of $592.4 million, according to FactSet.

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