Coal Stocks Hit All Time Low
Alpha Natural Resources stock is hitting all-time lows in recent trading as the coal industry in general has fallen into disfavor by investors.
Alpha stock closed at $5.87 on yesterday, down 23 cents from Friday. That is all-time low for Alpha. Alpha stock has lost about 82 percent since its high last summer.
Alpha is not alone. Stocks overall declined yesterday, and coal stocks in particular continued their slide from last summer's highs. Arch Coal is down about 80 percent, CONSOL Energy 50 percent, James River Coal 91 percent and Patriot Coal 94 percent.
Mild winter and spring weather reduced demand for coal from utilities that use it as fuel to generate electricity. Additionally, utilities and some manufacturers have switched from coal to cheaper natural gas for fuel. The price of natural gas has fallen nearly 25 percent this year because booming production has produced a glut.
As a result, a number of coal producers have cut back production and shuttered mines to reduce costs.