UPDATE 1-Coal miner Massey’s shares rise on positive news

(Updates with stock turning upward, analyst comments)

NEW YORK, Oct 27 (BestGrowthStock) – Shares of Massey Energy
(MEE.N: ) rose over 3 percent on Wednesday after the coal miner
said it was contracting to sell steel-making coal at
higher-than-expected prices and acknowledged its board is
considering strategic options for the company.

“There was positive information for investors,” Jeremy
Sussman, an analyst with Brean Murray Carret & Co, said after a
conference call in which Massey executives discussed the
company’s third-quarter results.

In afternoon trading on the New York Stock Exchange, Massey
stock was 3.7 percent higher at $41.95.

Earlier in the day, Massey stock had fallen 2 percent after
it reported a loss that it blamed partly on mine safety costs
following a blast that killed 29 men at one of its mines in
West Virginia.

Sussman noted Massey said it had signed contracts for
metallurgical coal at $155 to $160 per ton, “which is
considerably higher than we had modeled.”

He also said investors would be impressed by Chairman and
Chief Executive Don Blankenship’s acknowledgment of a Wall
Street Journal story last week that Massey’s board is looking
at “options to increase shareholder value.”

Late on Tuesday, the company posted a net loss of $41.4
million, or 41 cents per share, compared with a profit of $16.5
million, or 19 cents per share, last year. Excluding special
items, the loss was 33 cents per share.

Analysts were expecting a loss of 18 cents per share,
according to Thomson Reuters I/B/E/S.

Blankenship said operations had struggled since April, when
29 miners were killed at its Upper Big Branch mine in West
Virginia. He cited “increasingly stringent enforcement actions”
by the federal Mine Safety and Health Administration, resulting
in lost shifts and significant loss of productivity.

(Reporting by Steve James, editing by Dave Zimmerman and
Gunna Dickson)

UPDATE 1-Coal miner Massey’s shares rise on positive news