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Zacks Analyst Interview Highlights: Penn Virginia Resource Partners, Natural Resource Partners and Arch Coal.


CHICAGO -- Zacks.com releases the latest Analyst Interview. Today's interview is with analyst Matthew Thurmond, who discusses Penn Virginia Resource Partners (NYSE NYSE

See: New York Stock Exchange
:PVR See DVR. ), Natural Resource Partners (NYSE:NRP (Network Resource Planning) The planning, scheduling and control of a computer network. It includes documentation writing and network diagramming, analyses of traffic and congestion, analyses of application behavior and demand, procedures for failsafe and disaster ) and Arch Coal Arch Coal (NYSE: ACI) is a United States coal mining and processing company. The company mines, processes, and markets bituminous and sub-bituminous coal with low sulfur content in the United States. Arch Coal is the second largest supplier of coal in the U.S.  (NYSE:ACI ACI American Concrete Institute
ACI Arch Coal Inc
ACI Airports Council International (formerly Airport Associations Coordinating Council)
ACI Automobile Club d'Italia
ACI American Competitiveness Initiative
).

A synopsis of today's Analyst Interview is presented below. The full article can be read at http://at.zacks.com/?id=2678.

Would this be a good time to overweight, market-weight or underweight Underweight

An situation where a portfolio does not hold a sufficient amount of securities to satisfy the accepted benchmark of the portfolio's asset allocation strategy.

Notes:
 coal stocks?

I wouldn't sell the farm to place margin bets on the group, but do consider some exposure, i.e. "market-weighting" the group. The long-term outlook for coal prices is favorable, and coal's share of the power generation market is expected to rise to 57% in 2030 (yes, it's a far away number, but that's what the industry is looking at), up from today's 50%. Power generation accounts for 90% of U.S. coal consumption, so this share increase would have a material impact on both coal-tonnage sold and realized prices.

What are your top Buy recommendations at this time?

There is a lot of optimism buzzing around the sector, and this is mostly reflected in the stock prices. For less risky exposure, turn to Penn Virginia Resource Partners (NYSE:PVR) and Natural Resource Partners (NYSE:NRP). I have "Buy" recommendations on both and believe they offer high yields, 5.6% and 5.8%, alongside modest growth prospects. For a more speculative, faster-growth company, I would consider Arch Coal (NYSE:ACI). I currently have a Hold on the company, but its price is volatile and I would initiate a "Buy" below $35.

Looking forward a couple quarters, how would you advise investors consider increasing exposure to coal stocks?

Diversify a bit. Buy into both a mining company and a coal-royalty MLP (Meridian Lossless Packing) The compression technique used in DVD-Audio that provides the highest audio quality. It delivers two channels at 192 kHz with 24-bit samples or six channels at 96 kHz. . The mining side is more speculative and prone to wider price swings based on coal and natural gas prices. Coal MLPs, on the other hand, sign longer-term supply contracts and focus on increasing per-unit distributions. Their downside is cushioned and investors can collect a fairly stable yield on these securities. So buy into a mine for the big upside, and purchase MLP units for the stable yield and downside protection Downside Protection

Generally used in connection with covered call writing, this is the cushion against loss, in case of a price decline by the underlying security, that is afforded by the written call option.
.

Read the full interview at http://at.zacks.com/?id=2647.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis Qualitative Analysis

Securities analysis that uses subjective judgment based on nonquantifiable information, such as management expertise, industry cycles, strength of research and development, and labor relations.
 to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to Verb 1. subscribe to - receive or obtain regularly; "We take the Times every day"
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A firm that compiles earnings estimates and brokerage firm investment recommendations for thousands of publicly traded firms.
, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros by going to http://at.zacks.com/?id=2648.

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

(a)The Zacks Performance Rank performance is the total return of equal weighted simulated portfolios consisting of those stocks with the indicated Zacks Rank net of fees. Results reflect the reinvestment Reinvestment

Using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash.

1. In terms of stocks, it is the reinvestment of dividends to purchase additional shares.
 of dividends and other earnings. Simulated results do not represent actual trading and may not reflect the impact that economic and market factors might have had on decision-making if an adviser were actually managing a client's money.

(b)The S&P 500 Index ("S&P 500") is a well-known, unmanaged index of the prices of 500 large-company common stocks selected by Standard & Poor's. The S&P 500 includes the reinvestment of all dividends, no transaction costs Transaction Costs

Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it).
, and represents the gross returns before management fees.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
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No portion of this article can be reproduced without the express written permission from the copyright holder.
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Publication:Business Wire
Date:Aug 9, 2006
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