Alpha Natural Resources Shares Jumped: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of coal producer Alpha Natural Resources (NYS: ANR) jumped as much as 13% in trading today as coal stocks emerged from a long slump.

So what: Investors are starting to think that coal producers are showing some value and analysts have given a bit of a jolt today. Jefferies analyst Peter Ward said he thought coal stocks had been beaten down too far and they were due for an up day like today.

Now what: Peabody Energy (NYS: BTU) and other coal stocks are also climbing today in a tide that is raising all boats. I think there's lots of value in the industry, but with coal prices depressed on weak demand, I'm a little leery of this being the start of a long-term rally. This looks more like a dead cat bounce as the market tries to search for a bottom in coal stocks -- hardly a buy signal to this Fool.

Interested in more info on Alpha Natural Resources? Add it to your watchlist byclicking here.

At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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