There’s nothing like an acquisition rumor to pump some life into an otherwise moribund stock. And when the company that’s the subject of the rumor is a coal miner, the whole coal mining sector gets a push.
Today’s rumor involved a potential acquisition of Walter Energy Inc. (NYSE: WLT) by BHP Billiton plc (NYSE: BHP), the world’s largest natural resources company. Walter owns significant reserves of metallurgical coal, the kind used in steelmaking that sells for a substantial premium to thermal coal used in power generation.
This wouldn’t be the first time that BHP was identified as a potential buyer for Walter. The first reports of such $6 billion offer for Walter came more than a year ago, and lasted through May of this year. While it could still happen, a healthy skepticism seems in order.
Nonetheless, coal mining stocks are getting a boost today. Walter is up 6% at $30.25 in a 52-week range of $28.01 to $76.95. And Walter’s market cap at today’s stock price is less than $2 billion.
Peabody Energy Corp. (NYSE: BTU) is up 1% at $25.29 in a 52-week range of $18.78 to $39.74.
Arch Coal Inc. (NYSE: ACI) is up more than 2% at $6.70 in a 52-week range of $5.16 to $16.88.
Alpha Natural Resources Inc. (NYSE: ANR) is up 2.7% at $7.37 in a 52-week range of $5.28 to $25.48. Alpha also has large reserves of met coal thanks to its acquisition of Massey Energy.
James River Coal Co. (NASDAQ: JRCC) is up 7.9% at $3.82 in a 52-week range of $1.68 to $8.67.
The Market Vectors Coal ETF (NYSEMKT: KOL) is up 0.2% at $23.65 in a 52-week range of $21.49 to $37.39.
Paul Ausick
Take Charge of Your Retirement In Just A Few Minutes (Sponsor)
Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s made it easier than ever for you to connect with a vetted financial advisor.
Here’s how it works:
- Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
- Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
- Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.
Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.