Coal firms bouncing back from multiyear lows By Steve Gelsi,...

Coal firms bouncing back from multiyear lows



By Steve Gelsi, MarketWatch

NEW YORK (MarketWatch) — Peabody Energy continued Friday to rebound from its lowest levels in nearly three years in the wake of speculation that Warren Buffett could be shopping for a coal company and Peabody could be a candidate.

Coal stocks have been weak recently, pushed down by jitters over demand for metallurgical coal, which is used in steelmaking, from Asia; a mild U.S. winter and a shift toward natural gas to generate electric power.

But shares have been surging in the latter part of this week.

Coal producers ranked among the biggest gainers in the S&P 500 on Friday, with Alpha Natural ANR-0.01% up 5.8%, Peabody Energy BTU-0.05% ahead by 5.6% and Consol Energy CNX-0.05% advancing by 5.4%.

On Wednesday, Peabody fell to $30.09 a share, its lowest closing point since summer 2009. On Monday, Alpha Natural Resources ANR-0.01% fell to $15.76, the stock’s lowest level in about three years. Consol Energy, which produces coal as well as natural gas, closed at $31.70 a share on Wednesday, its lowest level since last October.

Outside of components of the S& P 500, Patriot Coal PCX-0.06% rallied nearly 10% on Friday after touching its lowest levels since 2009 on Monday.

Arch Coal ACI-0.05% rose 1.9% on Friday, after moving down to three-year lows recently.

Financial blog benzinga.com reported Thursday that account holders at twitter.com are speculating about Warren Buffett’s Berkshire Hathaway BRK.A-0.05% buying a coal company.

The Wall Street Journal blog, The Good Leads, on Friday cited the benzinga entry and included this entry: “Is Buffett really thinking about a coal acquisition? Consider BTU, KOL (Market Vectors-Coal ETF KOL+1.11% ), or ANR (Alpha Natural) if you believe so.”

Calls to Peabody Energy and Berkshire weren't immediately returned.


Steve Gelsi is a reporter for MarketWatch in New York.