Will Arch Coal Manage to Stay Listed—or Even Afloat?
Powder River Basin Coal Prices Pick Up: Will They Lead a Recovery?
Major losers
The title of this article isn’t really new for our regular readers. Walter Energy (WLTG) and Alpha Natural Resources (ANRZ) have already been delisted, and the former has filed for bankruptcy. Now Arch Coal (ACI) is struggling to stay listed and solvent.
According to the latest news, the company postponed its reverse split from July 27 to August 3 for “administrative reasons.”
Arch Coal was the biggest loser among NYSE (New York Stock Exchange) listed coal stocks, losing $0.0675, or 25.5%, during the week ended July 24. The stock closed at $0.20 on July 24 with a market capitalization of $42 million.
However, Alpha Natural Resources (ANRZ), which is trading over the counter after the delisting from the NYSE, was the biggest loser during the week. It fell by $0.03, or 30%, to $0.07.
Westmoreland Coal (WLB) fell 18.9% to close at $13.80 with a market capitalization of $247 million. The company reported a 2Q15 loss per share of $2.04, more than three times that of analyst expectations.
Cloud Peak Energy (CLD) fell 10.9% after the company reduced its guidance and reported lower shipments for 2Q15. The company is expected to publish its 2Q15 earnings on July 29.
Coal ETF
The Market Vectors Coal ETF (KOL) fell 6.7% to $9.59 in the week. During the same period, the SPDR S&P 500 ETF (SPY) fell 2.2%. American Coal producers account for 30% of KOL’s total holdings.
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