Opinion on  Arch Coal Inc. (ACI)     Sector: Energy  >  Industry: Coal
Bullish on ACI ...

The price of coal is going up and will continue to go up as the world begins to realise that (1)biofuels is a scam both environmentally and politically.(2)South Africa's coal mines will continue to be shut for sometime due to energy shortages,(3)China and India(it is setting up numerous ultramega power projects -a grandiose title for powerplants mainly coal based -even assuming 25%  of the promised projects actually come on stream coal consumption is going to increase).(4)Natural gas powerplants will also have its role but it is not easy to transport,so China will continue to burn coal.When China uses any commodity,they do it in such bulk that it exerts an upward pressure on price.

St. Louis-based Arch Coal is one of the nation's largest coal producers, with revenues of $2.4 billion in 2007. The company's core business is providing U.S. power generators with cleaner-burning, low-sulfur coal for electric generation. Through its national network of mines, Arch supplies the fuel for roughly 6 percent of the electricity generated in the United States.

"2007 was a transitional year for U.S. coal markets," Steven Leer, Arch's chairman and CEO, said in a statement. "With increased coal consumption and reduced production levels, the market was able to essentially rebalance itself. Looking ahead, we foresee a dynamic coal market in 2008, with robust international coal demand providing the catalyst for further strengthening in domestic coal markets. While expectations for a U.S. economic slowdown remain a concern, normal weather trends and strong global markets are driving price levels to new highs."