Shareholder Urges Walter Energy Sale; Citi Loves Coal Stocks (WLT, BTU, MT, ACI, NRP, AHGP, ANR, CNX, JRCC, CLD)
Shares of Walter Energy (WLT), the Alabama-based coal producer, are soaring 7% after Audley Capital Advisors, one of the largest investors in the company, said that is communicated directly with Walter’s board that the company should retain an investment bank and explore an immediate sale of the company. The news is helping the Coal Stocks Index to a 0.6% gain.
Audley said the recent $5.1 billion offer for Australia’s Macarthur Coal by Peabody Energy (BTU), the largest U.S. coal producer, and ArcelorMittal (MT), the world’s largest steelmaker, values Walter at $240 a share, more than double where the stock currently trades.
Citigroup also tried to provide a spark to coal stocks today, initiating coverage of Walter with a “buy” rating and a $144 price target. Shares of Arch Coal (ACI) are down 1% after Citi pared its price target on the stock to $32 from $34, but lifted its rating on the stock to “buy” from “hold.”
Shares of Natural Resources Partner (NRP) are off 1% despite Citi raising its rating on that stock to “hold” from “sell” and boosting its price target to $33 from $29, but that new price target is actually just below where the stock currently trades. Alliance Holdings (AHGP) is fractionally lower after Citi upgraded the stock to “buy” from “hold” while raising its price target to $56 from $52.50. The new price target implies upside of about 12% from where the stock currently resides.
Investors can track the Coal Stocks Index for performance trends and a suite of other metrics at tickerspy.com.
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