Thursday, April 21, 2011

Massey (MEE) (CLD) (PCX) (WLB) Close Up on Strong Demand, Higher Prices

While there have been some setbacks this year for some coal miners because of the floods in Australia, the overall industry looks robust, and demand is strong in China and India as coal firms like Massey Energy (NYSE:MEE), Cloud Peak Energy Inc. (NYSE:CLD), Patriot Coal (NYSE:PCX) and Westmoreland Coal Company (AMEX:WLB) closed up Wednesday on the long term trend.

Some thought the quarterly earnings report of Peabody Energy Corp. (NYSE:BTU) was going to drag down the coal sector, but guidance long term was strong, even in the midst of some of the short-term challenges.

Demand will remain strong for coal while supply is constrained. That's a good situation for any company providing a product, and it will be for the coal sector and the miners in it as well.

Record prices for steel-making metallurgical coal along with power-generating thermal coal in recent weeks has also given a boost to the industry.

Coal's importance will remand for decades and longer, and those supplying it should enjoy some solid growth and earnings during that time.

Westmoreland Coal Company closed at $16.68, gaining $0.38, or 2.33 percent. Patriot Coal ended the session at $24.53, up $0.43, or 1.78 percent. Cloud Peak Energy Inc. closed at $19.66, rising $0.24, or 1.24 percent. Massey Energy closed the day at $66.06, jumping $1.67, or 2.59 percent.

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