Friday, March 18, 2011

Shares of Arch Coal (ACI), (YZC), (BTU), (MEE) Rise on Expected Japan Demand

With few exceptions coal companies have been soaring on expectations Japan will need an huge supply of coal to replace the loss of nuclear energy. Companies like Arch Coal (NYSE:ACI), Yanzhou Coal mining Co. (NYSE:YZC), Peabody Energy Corporation (NYSE:BTU), and Massey Energy (NYSE:MEE) have been soaring in share price on the expected boost in demand, confirming the vital importance of coal as a major source in generating electricity.

Energy sectors like solar and wind power were also up, but that is more a irrational reaction and irrelevant, as there is nothing there that could aid Japan in the short or long term.

Liquefied natural gas is another demand expected to surge in Japan, as Japan is the largest importer of that in the world.

Arch Coal, Inc. closed Thursday at $35.09, gaining $.94, or 2.75 percent. Yanzhou coal mining Co. closed at $31.96, gaining $1.00, or 3.23 percent. Peabody Energy Corporation closed at $70.12, up $2.45, or 3.62 percent. Massey Energy ended the session at $63.15, up $2.32, or 3.81 percent.

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