Missouri-based Arch Coal (ACI) is one of the largest coal producers in the U.S., operating 20 mines across the major low-sulfur coal basins of the country. Arch’s well-capitalized, low-cost operations provide a competitive edge over smaller players in the industry. Its PRB assets reflect visible long-term value and the Jacobs Ranch acquisition will only enhance it. The Jacobs Ranch mine, located adjacent to Arch’s Black Thunder mine, would give the coal producer access to nearly 400 million tons of high-quality, low-cost coal reserves and several operating synergies.  Arch is well positioned to capitalize on the rebound in the commodity market once the global economy emerges from the ongoing crisis and demand revives. It has sensibly curbed production to match demand contraction and has taken initiatives to drive down operating costs to stay competitive amid the present challenging business environment. Moreover, the company has been rationally deploying capital ...

Arch Coal (ACI) recently extended the size and maturity of its senior secured revolving credit facility. The existing drawing limit under the credit line was raised to $860 million from $800 million through June 2011.

From June 2011, the company will have borrowing right of $763 million through March 2013, which may further be raised up to $800 million. The credit line extension will strengthen Arch Coal’s liquidity position and provide greater financial flexibility to pursue attractive growth opportunities going forward.

Last week, the company obtained clearance from the Federal Trade Commission (FTC) for acquiring the Jacobs Ranch mine in Wyoming from Rio Tinto (RTP). The $761 million deal will give Arch Coal control over around 381 million tons of high-grade, low-cost coal reserves adjacent to its Black Thunder mine and several operating synergies that will provide significant value for it shareholders. Last month, it had raised

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Arch Coal Optimistic Despite Posting Loss Arch Coal (ACI) posted a net loss of $15.1 million, or $0.11 per diluted share, for the second quarter of 2009, as the company weathers the ongoing economic downturn. The company had reported net income of $113.0 million, or $0.78 per diluted share, during the same period last year. Revenues dipped 29.4% to $554.6 million. Operating income collapsed to $7.3 million from $169.2 million on lower price realizations in the Powder River Basin and Central Appalachian regions and higher operating costs due to lower volumes and four longwall moves. Results include $3.0 million of expenses related to the pending acquisition of the Jacobs Ranch mine. Arch Coal continued to curb coal production to match the falling demand. The company sold 27.4 million tons of coal at an average selling price of $19.43 per ton. Sales volume decreased 20.3% on ...

For Immediate Release

Chicago, IL – July 17, 2009 – Zacks Equity Research highlights Biogen Idec (BIIB) as the Bull of the Day and Dell (DELL ) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Peabody Energy (BTU), Arch Coal (ACI) and CONSOL Energy (CNX).

Full analysis of all these stocks is available at http://at.zacks.com/?id=2676.

Here is a synopsis of all five stocks:

Bull of the Day:

Biogen Idec (BIIB) posted solid results in the second quarter of 2009, despite the slowdown in Tysabri sales due to fears of PML. We think the Biogen core business will remain strong over the next several quarters.

Tysabri prescriptions are showing improvement and we believe will resume their previous pace shortly. In the meantime, the name is significantly under-valued and would be a very

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Shares of Peabody Energy (BTU), Arch Coal (ACI) and CONSOL Energy (CNX) rallied more than 6% in Wednesday’s trading. These companies will start reporting their second quarter results as of next week. Peabody will report on 21st, followed by Arch on 24th and CONSOL on 30th. Patriot Coal (PCX), Natural Resource (NRP) and Walter Energy (WLT) also joined the race. Patriot rose nearly 6% and Natural and Walter went up more than 4%. Walter will report on 22nd of this month and Natural on 6th of August. Patriot is yet to confirm the date. Coal demand in the U.S. is expected to remain subdued this year due to low power consumption and weak industrial activity. However, demand is growing in Asia -- especially in India and China. As per China customs, China has imported 32.2 million ton of coal through May ...

Capitol Hill is moving faster than ever. We will get a Cap-and-Trade vote on Friday. The market has already cast its vote, making now a great time to make some smart investments. The Obama administration must be getting some schooling from Dealin’ Dave’s Used Car Sales.

Can’t you hear Nancy Pelosi saying to some farm-belt democrat, “What’s it going to take to get you into this climate bill tonight?”

One of the easiest “outs” for a potential car buyer is to say, “I like it, but let me go home and talk to my wife.”

It is no different with shoddy legislation. “I like it,” say our fence-sitting lawmakers, “but let me go home and talk to my constituents.”

Knowing if a customer leaves the lot, he may never come back, House leaders are working overtime to ensure the latest nefarious piece of legislation to come off of Capitol Hill gets a vote before

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Coal was one of our best performing sector groups in latter 2007 through summer 2008. While much of the focus of late has been on natural gas, the coal stocks have been ripping in even larger magnitude. I was a bull on coal over natural gas (although the market in its student body left trading simply moves all commodities together) because of the portability of coal over natural gas. We were early on this theme as the market was so focused on oil stocks at the time, and made a lot of money [Dec 6, 2007: Coal Stocks Quietly in Bull Market] I wrote a bevy of pieces about this 1.5 years ago… but again, the market is not very granular nowadays; it likes big sweeping themes that are simple: i.e. commodities good.

I have a litany of posts on just about

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If you have been paying attention, you know today’s surge from the coal industry is no big surprise. As much as he may want to, even Obama can’t slow the dirty fuel’s international growth.

It turns out I was not alone when I discussed my bullish outlook for the nation’s coal producers last week. Earlier today, a Goldman Sachs (NYSE:GS) analyst gave a similar opinion.

The only difference between my article and his note to clients? His sent the industry soaring.

As I wrote Friday, my favorite coal producer, James River Coal (NASDAQ:JRCC), used strong contract prices to beat its Q1 estimates and send shares surging. The momentum from last week’s announcement has continued through today. Over the last five trading sessions, shares of the company have jumped by more than 55%.

There is a bull on the loose, for sure.

Thanks to the analyst’s positive note, James River is

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We are downgrading our recommendation on Arch Coal (ACI) to Hold from Buy before the company releases its 4Q and full-year '08 results. Although coal prices have outperformed other commodities like steel, copper and oil, there looks to be no upside catalyst in the next six months for the industry and a result, ACI will likely trade flat during 1H'09.

As the effects of global monetary and fiscal stimulatory efforts work their way into Wall Street and Main Street, it will be more apparent as to the direction of the global economy. However, we do anticipate emerging markets to start recovering late in '09, which would spur new demand for electricity and steel, driving coal stocks higher.

We believe that ACI will trade around current levels for the first half of 2009. Therefore we are downgrading our recommendation and are lowering our six-month target price to $16.00 per share.

Read the

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Coal may be a dirty word in the clean energy movement. But David Fessler says the realities of global energy markets means it is going to be a key source of power in the coming decades. He says investors should include coal in their energy portfolio, and recommends three of the best ways to do it.

This from Investment U:

The Obama administration has made a big deal about renewable energy. Over the next several years, the new President has plans to spend roughly $150 billion promoting and enabling its growth. And with $700 billion flowing from the United States into OPEC’s pockets every year, I don’t think you’ll get much of an argument from anyone about the timeliness or the need for renewables.

But even with massive amounts of capital investment - and widespread adoption by utilities and end users - renewable energy will still only account for roughly

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