Foundation Coal Holdings, Inc. said Monday that it would have a production shortfall for the quarter and also said it will increase an existing share repurchase program by $100 million.

The stock trades for 5.6x cash flow.

Foundation Coal Holdings, Inc. said recently that it will increase an existing share repurchase program by $100 million.

Foundation has about 45.5 million shares outstanding. To date, Foundation has repurchased about $72 million worth of stock, leaving an available authorization of approximately $128 million for additional repurchases.
When companies repurchase shares they takes shares out of circulation, boosting the value of existing shares and fattening profits measured per-share.
The stock trades for 5.5x cash flow.

Morgan Stanley downgrades select coal stocks, moving Foundation Coal (FCL) from overweight to equalweight.

Downgraded by Citigroup from Buy to Hold

We estimate that Foundation will report first-quarter 2007 results of 27 cents per share, up from our initial estimate of 25 cents per share due to a modest increase in our North Appalachian coal price realization to $40 per ton from $39.75. First Call earnings consensus for the quarter is 30 cents per share. Foundation earned 69 cents per share in first-quarter 2006 and lost 48 cents per share in fourth-quarter 2006

Downgraded by Matrix Research from Buy to Sell

best in the group which is too cheap

Foundation Coal Holdings Inc. (FCL) extracts, cleans, and sells coal to electric utilities, steel producers, and other industrial companies.

PE=18
Yield 0.6%

it's hard to predict