Will Investors Buy Into Alpha Natural's Restructure?
Enthusiasm over China's stimulus talk provided a brief but significant spike to the coal industry last week, but the quick rally burned out as more global slowdown fears emerged. In an attempt to weather the storm, Alpha Natural Resources made a strategic shift to focus its operations on cost advantageous thermal coal and increased met-coal production in addition to stepping up exports to developing nations. The restructuring is expected to be accomplished by 2013, and it comes at a steep collateral cost of 1,200 jobs. With high-quality met-coal, Alpha Natural Resources is one of the few coal companies with a strong potential upside, but to conserve value, developing strong relations with emerging markets is a necessity. Check out the following video for more details on the restructuring and long-term prospects for Alpha Natural.
With the swelling of the global middle class, energy consumption will skyrocket over the next few decades, which could be another growth story for the coal or natural gas industry. Long-term investors know that exposure to this growth platform is imperative, and that's why we've picked one company that presents a rare "double-play" investment opportunity today. We're calling it The One Energy Stock You Must Own Before 2014, and you can uncover it today, totally free, in our premium research report. Click here to read more.
The article Will Investors Buy Into Alpha Natural's Restructure? originally appeared on Fool.com.Joel South and The Motley Fool have no positions in the stocks mentioned above. Motley Fool newsletter services recommend Kinder Morgan. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.