JPMorgan pared its price target on Alliance to $33 from $40, its target on Peabody to $5 from $7 and its target on Cloud Peak to $6.50 from $7. A case can be made that that is not all bad news. Alliance is 4.6% of KOL’s weight and $33 is well above the $24.80 area at which the shares currently reside. Shares of Peabody would need to more than triple to get to $5. Cloud Peak would need to gain more than 61% to reach that $6.50 price target.
Alpha Natural Resources and Arch Coal (NYSE: ACI), KOL’s two smallest holdings, currently trade for 24 cents and 31 cents, respectively. [Not Much Hope for Coal ETFs]
Market Vectors-Coal ETF