Enbridge (EEP) (CF) (CLD) (IPI) (PCL) (REXX) Ratings, Price Targets

Enbridge Energy Partners LP (NYSE: EEP), CF Industries Holdings (NYSE: CF), Cloud Peak Energy (NYSE: CLD), Intrepid Potash, Inc. (NYSE: IPI), Plum Creek Timber Co. (NYSE: PCL) and Rex Energy (NASDAQ: REXX) ratings and price targets.

CF Industries Holdings (CF) was downgraded by Credit Suisse (NYSE:CS) from an “Outperform” rating to a “Neutral” rating.

Cloud Peak Energy (CLD) was downgraded by Morgan Stanley (NYSE:MS) to an “Equal Weight” rating.

Enbridge Energy Partners LP (EEP) was downgraded by Morgan Keegan from an “Outperform” rating to a “Market Perform” rating.

Intrepid Potash, Inc. (IPI) was downgraded by Goldman Sachs (NYSE:GS) from a “Neutral” rating to a “Sell” rating.

Plum Creek Timber Co. (PCL) was downgraded by UBS AG (NYSE:UBS) from a “Neutral” rating to a “Sell” rating. They have a price target of $36.00 on the company.

Rex Energy (REXX) was downgraded by Tudor Pickering to a “Hold” rating.

Syngenta (SYT) (UAL) (SYT) (BNCL) (WEST) (WM) (CLD) Ratings, Price Targets

Syngenta AG (NYSE: SYT), United Continental (NYSE: UAL), Syngenta AG (NYSE: SYT), Beneficial Mutual Bancorp (NASDAQ: BNCL), Westinghouse Solar (NASDAQ: WEST), Waste Management (NYSE: WM) and Cloud Peak Energy (NYSE: CLD) ratings and price targets.

United Continental (UAL) had its “buy” rating reiterated by Sterne Agee. They have a price target of $38.00 on the company.

Syngenta AG (SYT) is now covered by Miller Tabak. They placed a “neutral” rating on the company.

Beneficial Mutual Bancorp (BNCL) was upgraded by Zacks Investment Research from a “neutral” rating to an “outperform” rating.

Westinghouse Solar (WEST) was downgraded by Zacks Investment Research from an “outperform” rating to a “neutral” rating.

Waste Management (WM) was downgraded by Societe Generale from a “buy” rating to a “sell” rating. They have a price target of $28.50 on the company.

Cloud Peak Energy (CLD) was upgraded by Simmons to an “overweight” rating.

First Solar (FSLR) (ARUN) (CLD) (GEN) (LII) (RIMM) (VMW) (WSO) Upgraded

First Solar (NASDAQ:FSLR), Aruba Networks (NASDAQ:ARUN), Cloud Peak Energy (NYSE:CLD), GenOn Energy (NYSE:GEN), Lennox International (NYSE:LII), Research In Motion (NASDAQ:RIMM), VMware, (NYSE:VMW) and Watsco (NYSE:WSO) upgraded by analysts.

Aruba Networks (ARUN) was upgraded by Capital Markets to a "Market Perform" rating.

Cloud Peak Energy (CLD) was upgraded by Dahlman Rose from a "Hold" rating to a "Buy" rating. They placed a price target of $24 on the company.

First Solar (FSLR) was upgraded by Collins Stewart from a "Neutral" rating to a "Buy" rating. They placed a price target of $132 on the company.

GenOn Energy (NYSE:GEN) was upgraded by SunTrust (NYSE:STI) from a "Neutral" rating to a "Buy" rating.

Lennox International (LII) was upgraded by KeyBanc Capital Markets to a "Buy" rating.

Research In Motion (RIMM) was upgraded by Sterne Agee from a "Neutral" rating to a "Buy" rating.

VMware, (VMW) was upgraded by Pacific Crest from a "Sector Perform" rating to an "Outperform" rating.

Watsco (WSO) was upgraded by KeyBanc Capital Markets to a "Buy" rating.

First Solar (FSLR) (ARUN) (CLD) (BLK) (HOT) Ratings Changed

First Solar (NASDAQ:FSLR), Aruba Networks (NASDAQ:ARUN), Cloud Peak Energy (NYSE:CLD), BlackRock (NYSE:BLK) and Starwood Hotels (NYSE:HOT) had their ratings changed by analysts.

Aruba Networks (ARUN) was upgraded by BMO from "Underperform" to "Market Perform." They have a price target of $20 on the company. They cited valuation as the catalyst behind the call.

BlackRock (BLK) has a new "Hold" rating on them from Jefferies (NYSE:JEF). They have a price target of $177 on the company.

Cloud Peak Energy (CLD) upgraded by Dahlman Rose from "Hold" to "Buy." They have a price target of $24 on the company.

First Solar (FSLR) was upgraded by Collins Stewart from "Neutral" to "Buy" rating. They have a price target of $132 on the company. They cited valuation as the catalyst behind the call.

Starwood Hotels (HOT) was downgraded by Morgan Stanley (NYSE:MS) from an "Overweight" to "Equal weight" rating. They have a price target of $47 on the company.

Uranerz (URZ) (WSO) (ANR) (WLT) (CLD) (OTEX) Price Targets Changed

Uranerz Energy Corporation (NYSE: URZ), Watsco, Incorporated (NYSE: WSO), Alpha Natural Resources (NYSE: ANR), Walter Energy (NYSE: WLT), Cloud Peak Energy (NYSE: CLD) and Open Text (NASDAQ: OTEX) price targets adjusted by analysts.

Watsco, Incorporated (WSO) had its price target lowered by UBS AG (NYSE:UBS) to $54.00. They have a “Neutral” rating on the company.

Alpha Natural Resources (ANR) had its price target lowered by FBR Capital from $58.00 to $53.00. They have an “Outperform” rating on the company.

Uranerz Energy Corporation (URZ) had its price target lowered by Dahlman Rose from $5.00 to $3.50. They have a “Buy” rating on the company.

Walter Energy (WLT) had its price target lowered by FBR Capital from $139.00 to $104.00. They have a “Market Perform” rating on the company.

Cloud Peak Energy (CLD) had its price target lowered by FBR Capital from $28.00 to $25.00. They have an “Outperform” rating on the company.

Open Text (OTEX) had its price target lowered by The Benchmark Company from $56.00 to $52.00. They have a “Sell” rating on the company.

Coal's Cloud Peak (CLD) (NRP) (ANR) (ASX:MCC) Poised for Soaring Coal Demand

Soaring coal demand around the world should drive up the share prices of many companies with significant exposure to coal like Natural Resource Partners (NYSE:NRP) Alpha Natural Resources (NYSE:ANR), Macarthur Coal Ltd. (ASX:MCC) and Cloud Peak Energy Inc. (NYSE:CLD).

When it comes to coal don't listen to the snake-oil salesman from the mainstream media who attempt to paint coal as a dying industry, when in fact it's poised for an unprecedented upward move in demand as emerging markets and developing markets clamor for the energy source.

The two obvious candidates for just about everything - China and India - are behind the demand for coal of all types (thermal and coking), but the developing world is also looking to make up for shortfalls.

Most coal companies and companies with exposure to coal will benefit from this long-term trend, especially those in the United States, who are looking to expand beyond its domestic market, where demand is being artificially constrained by the government.

The coal in demand has high energy content (a particular strength in the U.S.) where coal has significant sulfur in it.

Climate change hucksters have been pressuring the radical Obama administration to cut back on coal domestically while just about everywhere else it's in huge demand.

This has even led former Microsoft CEO Bill Gates to say alternative energy sources like solar and wind are a "cute" idea, but will do little if anything to assuage the energy needs of the world.

He's referring to the billions of people in need of electricity and how sources like coal will be used for a long time into the future. He sees nuclear as being the more viable alternative than the anemic results coming from wind, power and geothermal sources.

In the short term demand from Japan will also make a big increase in demand for coal as it seeks alternative energy sources as it rebuilds the nation.

China is expected to import about 70 million tons of coal in 2011 while India will import about 60 million.

Thermal coal, which is used to generate electricity, is expected to surge in demand in 2011 to over 7 billion tons.

Recently Peabody Energy CEO Greg Boyce said investors that over the next decade coal will generate more electricity than "gas, oil, nuclear, hydro, geothermal and solar combined."

For coal companies based in America, their challenge is infrastructure related, where railroads and ports will be pressed to push through enough coal to meed surging demand.

According to Arch Coal President John Eaves, "It's something unprecedented in human history, arguably, 3 billion people going through an industrial revolution at the same time," referring to the possibility of about 11 percent (35 gigawatts) of coal-fired U.S. capacity being shut down over the next decade, while at the same time 249 gigawatts of new coal-fired power plants are being constructed around the world.

He sees close to another 800 million tons of new coal needed to supply the growing needs, in addition to what is already being supplied.

So when you read the next media report about the decline of the coal industry, take it with a grain of salt. The old energy source is becoming the next big thing, and will remain that way for decades.

Some will say that coal is back, but the fact is it never went away.

Well-run coal companies should grow for many years into the future. It is a long-term play, not something that will be volatile and experience huge swings on a day-to-day basis like silver can.

Cloud Peak (CLD) closed Friday at $19.97, down $0.96, or 4.59 percent.

Coverage on (CLD) (CHSI) (FICO) (TWO) Initiated by Analysts

Cloud Peak Energy Inc. (NYSE:CLD), Catalyst Health Solutions, Inc. (NASDAQ:CHSI), Fair Isaac Corp. (NYSE:FICO) and Two Harbors Investment Corp. (NYSE:TWO) had coverage initiated on them by analysts.

FBR Capital Markets initiated coverage on Cloud Peak Energy Inc. (CLD), starting them off with an "Outperform" rating. They raised their price target from $26 to $27 on the company.

Credit Suisse (NYSE:CS) initiated coverage on Catalyst Health Solutions, Inc. (CHSI), starting them off with an "Outperform" rating. They placed a price target of $70 on the company.

Deutsche Bank (NYSE:DB) initiated coverage on Fair Isaac Corp. (FICO), starting them off with an "Hold" rating. They raised their price target from $25 to $28 on the company.

Credit Suisse initiated coverage on Two Harbors Investment Corp. (TWO), starting them off with an "Outperform" rating. They placed a price target of $11 on the company.

Coverage on (AYR) (H) (CIM) (MHLD) (CLD) Initiated by Analysts

Aircastle LTD (NYSE:AYR), Hyatt Hotels Corp. (NYSE:H), Chimera Investment Corp. (NYSE:CIM), Maiden Holdings Ltd. (NASDAQ:MHLD) and Cloud Peak Energy Inc. (NYSE:CLD) had coverage initiated on them by analysts.

FBR Capital Markets initiated coverage on Aircastle LTD (AYR), starting them off with an "Outperform" rating. They raised their price target from $14 to $15 on the company.

Credit Suisse (NYSE:CS) initiated coverage on Hyatt Hotels Corp. (H), starting them off with an "Outperform" rating. They placed a price target of $54 on the company.

Credit Suisse initiated coverage on Chimera Investment Corp. (CIM), starting them off with an "Outperform" rating. They placed a price target of $4.25 on the company.

FBR Capital Markets initiated coverage on Maiden Holdings Ltd. (MHLD), starting them off with an "Outperform" rating. They raised their price target from $10 to $11 on the company.

Credit Suisse initiated coverage on Cloud Peak Energy Inc. (CLD), starting them off with a "Buy" rating. They lowered their price target from $30 to $26 on the company.

Arch Coal (ACI) (LLEN) (MCC) (CLD) Trade Mixed

Even with thermal coal demand rising, along with coal imports from China, Arch Coal, Inc. (NYSE:ACI), L&L Energy (NASDAQ:LLEN), Macarthur Coal Ltd. (MCC) and Cloud Peak Energy Inc. (NYSE:CLD) still closed mixed Thursday with the rest of the coal industry, as the sector took a break.

Coal prices in China have been soaring as domestic producers face higher costs. That has led to Chinese utilities looking outside the country for cheaper prices.

According to China Coal Transport and Distribution Association imports in May will increase as a result of the domestic market conditions in the country.

Inventories at ports continue to be low, which should cause domestic coal prices to continue to push up, increasing the coal imports, which will benefit any coal producer with exposure in China.

Cloud Peak Energy Inc. closed Thursday at $19.59, falling $0.59, or 2.92 percent.

Cloud Peak Energy Inc. (NYSE:CLD), Joy Global (Nasdaq:JOYG), Massey Energy (NYSE:MEE) and Peabody Energy Corporation (NYSE:BTU) Futures Look Good as C

Coal demand should provide good returns for coal companies like Cloud Peak Energy Inc. (NYSE:CLD), Joy Global (Nasdaq:JOYG), Massey Energy (NYSE:MEE) and Peabody Energy Corporation (NYSE:BTU).

While the stories of the demise of coal have been going on for decades, a new report from the U.S. Energy Information Administration called the “Annual Energy Outlook,” again asserts coal will decline substantially over the next 25 years, although it seems a lot of things will have to happen almost perfectly for that to be the case.

But if there is a significant dent made in the demand from coal, it'll come from natural gas, not from the expensive and unreliable sources like wind turbines and solar energy. At this time so-called renewable supply about 11 percent of electricy in America.

If the past is any indicator, the projections of coal replacement are far too optimistic, and it is certain it will be a major part of electrical generation for decades.

Coal suppliers should continue to do well for years, as demand continues, but it will probably be at a slower rate than in the past, and the amount of supply of metallurgical coal by a company will determine a lot of the success of each individual firm.

Massey (MEE) (PCX) (CLD) (ICO) (PVR) Strengthened by Increasing Coal Demand

Soaring demand from China and India for thermal or steam coal, and to a lesser degree, coking or metallurgical coal, is pushing the price of coal up, as well as the share price of those coal companies and companies with coal exposure such as Massey Energy (NYSE:MEE), Patriot Coal (NYSE:PCX), International Coal Group, Inc. (NYSE:ICO), Cloud Peak Energy Inc. (NYSE:CLD) and Penn Virginia Resource Partners (NYSE:PVR) who provide the needed energy source.

IN 2011 India should import about 60 million tons of thermal coal, a 17 percent increase over 2010's 47 million tons. China is expected to import about 70 million tons of thermal coal in 2012.

Thermal coal is used to generate electricity while coking coal is used to run steel plants. Overall, thermal coal demand is projected to surpass 7 billion tons in 2011, according to U.S. coal producer Peabody Energy Corp. (NYSE:BTU).

Thermal coal will probably grow faster than oil and gas in 2011, soaring over 30 percent to a record as demand from China and India climb and Japan increases its imports to make up for nuclear power lost after the recent earthquake.

Daniel Brebner, an analyst for Deutsche Bank (NYSE:DB) in London, said in the early part of April that thermal coal will average $132 a ton this year and $145 in 2012. Those prices are similar to what other analysts have also projected for thermal coal prices in that time period.

Head of Rio Tinto Group’s Coal & Allied Industries Ltd. unit, Chris Renwick, said, “We expect strong demand growth in China and India will continue throughout 2011 and the long-term prospects are also bright. Our traditional Asian markets have returned to pre-global financial crisis demand levels.”

Massey Energy closed Friday at $68.242, climbing $1.90, or 2.86 percent.

Posco (PKX) (AHGP) (ICO) (CLD) Close Mixed as Thermal Coal Demand Soars

Alliance Holdings GP, (NASDAQ:AHGP), International Coal Group, Inc. (NYSE:ICO), Cloud Peak Energy Inc. (NYSE:CLD) and Posco (NYSE:PKX) close mixed as surging demand from China and India for thermal or steam coal, and to a lesser extent, coking or metallurgical coal, is pushing the price of coal up, as well as the share price of those coal companies and companies with coal exposure like ... who provide the needed energy source.

IN 2011 India should import about 60 million tons of thermal coal, a 17 percent increase over 2010's 47 million tons. China is expected to import about 70 million tons of thermal coal in 2012.

Thermal coal is used to generate electricity while coking coal is used to run steel plants.

Overall, thermal coal demand is projected to surpass 7 billion tons in 2011, according to U.S. coal producer Peabody Energy Corp. (NYSE:BTU).

Thermal coal will probably grow faster than oil and gas in 2011, soaring over 30 percent to a record, as demand from China and India climbs and Japan increases its imports to make up for nuclear power lost after the recent earthquake.

Daniel Brebner, an analyst for Deutsche Bank (NYSE:DB) in London, said in the early part of April that thermal coal will average $132 a ton this year and $145 in 2012. Those prices are similar to what other analysts have also projected for thermal coal prices in that time period.

Head of Rio Tinto Group’s Coal & Allied Industries Ltd. unit, Chris Renwick, said, “We expect strong demand growth in China and India will continue throughout 2011 and the long-term prospects are also bright. Our traditional Asian markets have returned to pre-global financial crisis demand levels.”

Posco (PKX) (ICO) (BTU) (CLD) Close Mixed as Thermal Coal Demand Explodes

Growing demand from China and India for thermal or steam coal, and to a lesser degree, coking or metallurgical coal, is driving the price of coal up, as well as the share price those coal companies and companies with coal exposure like International Coal Group, Inc. (NYSE:ICO), Peabody Energy Corporation (NYSE:BTU), Cloud Peak Energy Inc. (NYSE:CLD) and Posco (NYSE:PKX), all of which provide the needed energy source.

IN 2011 India is expected to import about 60 million tons of thermal coal, a 17 percent increase over 2010's 47 million tons. China is estimated to be looking at importing about 70 million tons of thermal coal in 2012.

Thermal coal is used to generate electricity while coking coal to run steel plants.

Overall, thermal coal demand is estimated to surpass 7 billion tons in 2011, according to U.S. coal producer Peabody Energy Corp. (NYSE:BTU).

Thermal coal will probably grow faster than oil and gas in 2011, increasing over 30 percent to a record, as demand from China and India soars and Japan adds to its imports to make up for nuclear power lost after the recent earthquake.

Daniel Brebner, an analyst for Deutsche Bank (NYSE:DB) in London, said in the early part of April, that thermal coal will average $132 a ton this year and $145 in 2012. Those prices are close to what other analysts have also projected for thermal coal prices going forward.

Head of Rio Tinto Group’s (NYSE:RIO) Coal & Allied Industries Ltd. (CNA) unit, Chris Renwick, said, “We expect strong demand growth in China and India will continue throughout 2011 and the long-term prospects are also bright. Our traditional Asian markets have returned to pre-global financial crisis demand levels.”

Posco (NYSE:PKX) closed Thursday at $111.13, falling $2.10, or 1.85 percent. Cloud Peak Energy Inc. ended the day at $19.94, up $0.28, or 1.42 percent. Peabody Energy Corporation closed at $66.02, jumping $1.12, or 1.73 percent. International Coal Group, Inc. closed the session at $10.87, rising $0.19, or 1.78 percent.

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.

Arch Coal (ACI) (AHGP) (CLD) (NRP) Close Mixed On Coal Prices

Coal companies have been performing somewhat volatile of late, depending on specific results for each company, even though the overall sector has been doing well recently. Firms like Alliance Holdings GP, (NASDAQ:AHGP), Cloud Peak Energy Inc. (NYSE:CLD), Arch Coal, Inc. (NYSE:ACI) and Natural Resource Partners (NYSE:NRP) closed mixed on Friday.

Metallurgical coal prices were mixed last week on the U.S. spot market, with spot prices for low-volatility coking coal dropping $3.12, or 0.9 percent, to $326.88 a ton in the week ended Friday, according to Energy Publishing Inc.. High-volatility coal remained the same at $298.33.

Like any sector, coal companies, even within a high-demand industry, still won't be carried solely by the robust market demand.

Even so, approximately 40 percent of global electricity production comes from coal, and should rise in the years ahead, as coal consumption is expected to increase at a rate of 2.5 percent annually over the next 20 years, according to Research and Markets.

It could even be more than that, as evidenced by the 5 percent increase in 2010, according to the EIA. It adds that 2011 coal consumption should remain about level, and in 2012 should jump by between 2 to 3 percent.

JPMorgan (NYSE:JPM) also recently said coal prices are up over the last year, but are still below the highs attained before the financial crisis in the latter part of 2008, suggesting room to move higher, although the health of the global economy will play a role there.

Coal is still the major fuel for electricity production. Global coal consumption, approximately 6.7 billion tons in 2006, is set to reach close 10 billion tons in 2011.

China produces about 70 percent of its electricity from coal and demand there continues to grow. Demand for coal to fuel power plants will climb to 1.4 billion tons by 2015, according to China Huaneng Group Corp.’s Chief Economist Wu Dawei.

So when you hear the next report attempt to downplay the role of coal, don't believe it. It's as needed and in demand as ever, and similar to the oil peak predictions, is pretty much a joke, as coal has been attempted to be painted in the same way, not taking into account the huge amounts of coal being discovered in China, and other places, and extraction methods that have been improved.

Many coal companies will shine, but they still need to be judged by their individual merits and not expect the ongoing coal demand imply all of them will be winners pulled up by the broader sector.

Natural Resource Partners (NYSE:NRP) closed Friday at $34.10, gaining $0.14, or 0.41 percent. Arch Coal, Inc. closed at $33.74, rising $0.39, or 1.17 percent. Cloud Peak Energy Inc. ended the session at $19.88, falling $0.76, or 3.68 percent. Alliance Holdings GP closed at $50.33, up $0.72, or 1.45 percent.

Coal Firms Alliance (AHGP) (ARLP) (WLB) (CLD) Trade Mixed

Coal companies have been performing somewhat volatile of late, depending on specific results for each company, even though the overall sector has been doing well. Firms like Alliance Resource Partners, (NASDAQ:ARLP), Westmoreland Coal Company (AMEX:WLB), Alliance Holdings GP (NASDAQ:AHGP) and Cloud Peak Energy Inc. (NYSE:CLD) closed mixed on Thursday, as the market looks for short-term direction.

Like any sector, coal companies, even within the high-demand industry, still won't be carried solely by the robust market demand.

Even so, approximately 40 percent of global electricity production comes from coal, and that could rise in the years ahead, as coal consumption is expected to increase at a rate of 2.5 percent annually over the next 20 years, according to Research and Markets.

It could even be more than that, as evidenced by the 5 percent increase in 2010, said the EIA. It adds that 2011 coal consumption should remain about level, and in 2012 should grow by between 2 to 3 percent.

JPMorgan (NYSE:JPM) also recently said coal prices are up over the last year, but are still below the highs attained befort he financial crisis in the latter part of 2008, suggesting room to move higher, although the health of the global economy will play a role there.

Coal is still the major fuel for electricity production. Global coal consumption, approximately 6.7 billion tons in 2006, is set to reach close 10 billion tons in 2011.

China produces about 70 percent of its electricity from coal and demand there continues to grow. Demand for coal to fuel power plants will climb to 1.4 billion tons by 2015, according to China Huaneng Group Corp.’s Chief Economist Wu Dawei.

So when you hear the next report attempt to downplay the role of coal, don't believe it. It's as needed and in demand as ever, and similar to the oil peak predictions, is pretty much a joke, as coal has been attempted to be painted in the same way, not taking into account the huge amounts of coal being discovered in China, and other places, and extraction methods that have been improved.

Many coal companies will shine, but they still need to be judged by their individual merits and not expect the ongoing coal demand imply all of them will be winners pulled up by the broader sector.

Cloud Peak Energy closed Thursday at $20.64, falling $0.45, or 2.13 percent. Alliance Resource Partners closed at $49.61, dropping $0.57, or 1.14 percent. Westmoreland Coal Company ended the day at $15.75, gaining $0.23, or 1.48 percent. Alliance Holdings GP closed at $49.61, down $0.57, or 1.14 percent.

Alpha Natural (NYSE:ANR), International Coal (NYSE:ICO), Peabody Energy (NYSE:BTU) Benefit from Japan's Nuclear Issues

Coal miners have been getting a big boost because of rising coal prices, and Alpha Natural (NYSE:ANR), International Coal (NYSE:ICO) and Peabody Energy (NYSE:BTU) have been among the big beneficiaries, and should bet an even bigger boost because of the demand created from the nuclear problems as a result of the Japan earthquake.

"Coal stocks have generally performed very well in the last six months. This is no surprise, as global coal prices, both thermal and metallurgical, are reaching multiyear highs. We think this momentum will continue in the coming year," said Morningstar.

"The coal industry has benefited from two relatively unlikely events in the last few months. First, in late 2010, torrential flooding in Australia severely disrupted metallurgical coal shipments out of Queensland. As Australia is a linchpin of the global coal trade, this sent Asian coal prices soaring to levels unseen since 2008. Metallurgical coal prices in particular jumped perhaps 40% to over $300 per ton.

"Then, a giant earthquake and tsunami plowed into Japan, severely damaging the Fukushima nuclear power plant. Although the Japanese authorities seem to have the situation under control, the near-meltdown at the plant shook the world's confidence in nuclear power to its core. In the days since the disaster, China temporarily halted its ambitious reactor building program, and Germany peremptorily shut down its pre-1980 plants. Regulators from the United States and Japan are also scrutinizing plant safety and may mandate additional safeguards and increased inspections going forward.

"In the medium term, damage to Japanese nuclear power will slightly increase demand for thermal coal. However, the most profound consequences will be the long-term impact on the global energy mix. All of the upcoming challenges to nuclear power will diminish its contribution to world electricity generation. The shortfall will have to be made up somewhere, and one of the big sources is coal."

That last comment about the diminishing of nuclear power to to generating electricity is ridiculous in my view. No one but the some of those in the developed world have even made comments they're going to change nuclear policies. China and other Asian countries, while performing the obligatory inspections to ensure safe nuclear power, has already said they're going to continue their focus and strategy of using nuclear as a big part of its energy production. Nothing has changed that.

Coal is more likely to be an increasing part of the generation of electricity because of the irrelevance of wind and solar power, which is still a nonsensical and irrelevant energy source, which are extremely limited in being effective and consistent. The price for solar also remains astronomical and countries can't afford to subsidize the sector any longer and are pulling support out from underneath it.

Other coal companies which will strongly benefit from rising prices and increasing demand are Peabody Energy (NYSE:BTU), Arch Coal (NYSE:ACI) and Cloud Peak Energy (NYSE:CLD).




Source

Shares of Penn Virginia (PVR), (ARLP), (AHGP), (CLD) Jumping on Japan Coal Demand Expectations

With the exception of a couple of coal companies, almost all of them have been pushing up on expectations Japan will need an abundant supply to make up for the temporary loss of nuclear energy. Companies like Penn Virginia Resource Partners (NYSE:PVR), Alliance Resource Partners (NASDAQ:ARLP), Alliance Holdings GP, (NASDAQ:AHGP) and Cloud Peak Energy Inc. (NYSE:CLD) have been moving up in share price on the expected increased demand, confirming the importance of coal in generating electricity.

Others energy sectors up were those related to solar and wind power, but that is more a knee jerk reaction and irrelevant, as there is nothing there that could help in the short or long term in Japan.

Another demand in Japan is liquefied natural gas, which is also expected to grow in demand, as Japan is the largest importer of LNG in the world.

Penn Virginia Resource Partners closed Thursday at $26.51, gaining $1.00, or 3.92 percent. Alliance Resource Partners closed at $81.07, gaining $4.40, or 5.74 percent. Cloud Peak Energy closed at $21.39, up $0.77, or 3.73 percent. Alliance Holdings ended the session at $56.50, up $2.99, or 5.59 percent.

FBR Says (ACI), (CLF), (ANR), (CLD), (BTU), (CNX) Should Jump on Nuclear Woes

We'll have to wait to see what effects the inevitable knee jerk reaction from politicians will have on the nuclear sector, but any slowdown there, which is a strong probability, will result in a boost in coal and steel, which should benefit companies like Consol Energy (NYSE:CNX), Arch Coal (NYSE:ACI), Cliffs Natural Resources (NYSE:CLF), Alpha Natural Resources (NYSE:ANR), Cloud Peak Energy (NYSE:CLD) and Peabody Energy (NYSE:BTU).

FBR said, “We note the recent pullback in coal stocks due to fears of China slowing and, then, potential temporary demand loss from Japan’s earthquake. With stocks now offering about 31% upside potential to our price targets, and valuation becoming attractive, we believe investors should start picking up quality names, such as Arch Coal (ACI), Cliffs Natural Resources (CLF), Alpha Natural Resources (ANR), Cloud Peak Energy (CLD), Peabody Energy (BTU), and Consol Energy (CNX). We are also becoming more constructive now on met names but look for the appropriate time, valuation, or catalyst to step into the names.”

“[I}n the mid to long term, we are confident that Japan will rebuild and upgrade all the houses, cars, and dilapidated infrastructure, which is positive for new steel demand and, thus, iron ore and met coal,” added FBR.

For coal, FBR believes it could rise from 4 percent to 5-6 percent a year over the next several years.

Arch Coal (NYSE:ACI), Cloud Peak Energy (NYSE:CLD), Peabody Energy (NYSE:BTU) Would Benefit Greatly from Pacific Export Terminal

Arch Coal (NYSE:ACI), Cloud Peak Energy (NYSE:CLD) and Peabody Energy (NYSE:BTU) stand to benefit strongly from the proposed Washington State coal export terminal by Ambre Energy.

The company proposes to build a coal export terminal on the Columbia River in Longview, Washington. Once operational it would deliver over 5 million tons of coal to the coal-hungry nations of China, Japan, South Korea, and India, where demand for coal continues to grow.

The state granted a permit for Ambre to convert a former aluminum smelter into an export terminal.

Radical environmentalists, as usual, oppose the terminal, citing the tired old lie of global warming or climate change as the reason it shouldn't be allowed to go forward.

A typically clueless lawyer for Earthjustice named Jan Hasselman, said, "How are we going to get to the climate goals that

scientists have said are necessary? These decisions are being made by others, such as the coal companies, by default."

Hasselman needs to do some homework, as scientists haven't come to any type of consensus to there even being such a thing a man-made global warming, as a matter of fact, tens of thousands say the so-called science behind it is flawed and inaccurate.

Even the e-mails discovered from global warming proponents saying they had made up some of their data supporting man-made global warming hasn't stopped the fanatical true believers from continuing to spew their unprovable assertions.

As a matter of fact, data show the earth has been cooling for over a decade, and will probably be entering into a much colder period of time than it has been even recently.

One way or the other there will be delivery terminals for coal to Asia, as the demand will be there for decades, and it would be irresponsible not to meet that demand with American coal.

As for Arch Coal, Cloud Peak Energy and Peabody Energy, they will be among the top beneficiaries of a coal-exporting terminal in the short term, which would probably attract much more investment to meet the energy needs of Asia.

Cloud Peak Energy closed Friday at $23.66, down $0.52, or 2.15 percent. Peabody Energy closed at $63.48, down $1.31, or 2.02 percent. Arch Coal closed Friday at $33.50, down $0.48, or 1.41 percent.