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10-24-2005 ACI - Arch Coal

CURRENT PRICE: $71.41

TYPE OF PLAY: EARNINGS GROWTH/SECTOR MOMENTUM

This coal miner is St. Louis-based and is the nation’s second largest coal producer. They mine clean-burning, low-sulfur coal exclusively. In total, they contribute about 13% of America's coal supply from 13 mining complexes in West Virginia, Wyoming, Kentucky, Virginia, Colorado and Utah. With energy stocks pulling back recently, this sector has been on fire. ACI is the momentum leader here and with very good earnings posted this morning. We have to be conscious of a "sell on the news" effect due to the recent run-up but this company is poised for growth and has said that "2006 demand could outstrip production." That should keep the analysts from throwing a great quarter under the bus as we have seen so many times before.

LINKS FOR FURTHER READING:
ACI homepage
Earnings Summary
SEC filings for ACI
General ACI statistics