Seeking Alpha

Alpha Natural -9.4% after Goldman says sell on coal oversupply

  • Alpha Natural Resources (ANR -9.4%) is hit hard after Goldman Sachs last night cut its rating on the shares to Sell and lowered its price estimates for coal; other sector names are following suit.
  • Goldman also cut its price estimate for met coal this year to $141/metric ton from $150 and lowered projections for next year and 2016 following increased Australian output, an expected slowdown in the growth of Chinese imports, and “limited U.S. supply rationalization."
  • The firm maintains a Neutral rating on Walter Energy (WLT -5.6%) but cuts its price target to $10 from $12.
  • Also: BTU -4.2%, ACI -4%, CNX -1.5%, OXF -1.6%, JRCC -1.5%, CLD -0.7%, KOL -2.1%.
Comments (20)
  • PM's Rock
    , contributor
    Comments (99) | Send Message
     
    Nice job by our elected leaders killing the coal industry in the US. Is there anyway we can stop the oligarchs on their fast track to destroying the US economy. It is like a perfect storm of incompetence in Washington.
    7 Mar, 02:03 PM Reply Like
  • Sirvasq
    , contributor
    Comments (294) | Send Message
     
    Dipped in and purchased at 10, again, where there is great support for $WLT.
    7 Mar, 05:21 PM Reply Like
  • benitus
    , contributor
    Comments (1898) | Send Message
     
    Yes, sir. Every time WLT dips to $10 or less, it's time to load up on the stock. Bought more at $10 and got out at $10.80 after market. Nobody's going to write off WLT anytime soon. The main competition to our exports is Australia but the best quality coal comes from Vietnam, which is clean and of the highest calorific value, way much higher than our best coal, which isn't very clean. So, our coal industry depends largely on domestic consumption and if our power plants convert to using other forms of fuel, then the coal industry is toast. At least, WLT has some standing and survival skills because it produces met coal, which the steel industry needs to fire up its furnaces. Long WLT.
    7 Mar, 09:02 PM Reply Like
  • Bailout2009
    , contributor
    Comments (223) | Send Message
     
    Perfect ..when Goldman says sell ....that means the bottom is here....Im buying
    7 Mar, 10:58 PM Reply Like
  • xtddd
    , contributor
    Comments (272) | Send Message
     
    yes, that is right! i think ANR is an opportunity now!
    8 Mar, 07:16 AM Reply Like
  • slash32is4
    , contributor
    Comments (115) | Send Message
     
    i think good news for WLT is on the way
    8 Mar, 01:58 PM Reply Like
  • Bailout2009
    , contributor
    Comments (223) | Send Message
     
    why do yo think good news on the way for wlt
    9 Mar, 01:26 PM Reply Like
  • slash32is4
    , contributor
    Comments (115) | Send Message
     
    rumor I hear... we will see
    9 Mar, 03:23 PM Reply Like
  • wil3714
    , contributor
    Comments (1601) | Send Message
     
    Its more good news for WLT now than bad. The bad news is priced into the stock at this point so more negative news wont really hurt them company right now.
    9 Mar, 03:33 PM Reply Like
  • benitus
    , contributor
    Comments (1898) | Send Message
     
    yes, wil......the bad news have already been discounted, so nothing worse can really hurt WLT. I expect WLT to improve next week (but I may be wrong). Beyond that, only God knows. Anyway, I've been loading up on WLT every time it has a 30cts movement down and unloading with a similar margin, so I've been earning quite some money with WLT, so long as it keeps moving up and down. Let's all drink up to WLT. Long WLT.
    9 Mar, 06:45 PM Reply Like
  • wil3714
    , contributor
    Comments (1601) | Send Message
     
    You'd be better going longer than $.30, just my $.02
    10 Mar, 12:40 AM Reply Like
  • benitus
    , contributor
    Comments (1898) | Send Message
     
    wil....I'm not greedy, as I'm only interested in quick profit but I do trade in heavy volume because it's a cheap stock. It's so much more fun making money repeatedly, i.e. several round-trips, instead of waiting for it to appreciate some more before I can make a single round-trip.
    10 Mar, 01:26 AM Reply Like
  • slash32is4
    , contributor
    Comments (115) | Send Message
     
    looks like noone cares about the news
    10 Mar, 09:42 AM Reply Like
  • Bailout2009
    , contributor
    Comments (223) | Send Message
     
    what rumor....that is a pump as far as I am concerned.....
    10 Mar, 01:32 PM Reply Like
  • sethmcs
    , contributor
    Comments (3077) | Send Message
     
    I was busy working and glanced at the tape and saw ANR off $.68 and thought it was something serious. Glad is was only a Goldman down grade.
    8 Mar, 10:19 PM Reply Like
  • BigGeneral
    , contributor
    Comments (56) | Send Message
     
    no doubt whatsoever that WLT ANR ACI will file bk in a couple of years. profit can not cover interest payment( hundreds million dollars anually). finance deterorates day by day. debt cumulates to tens billions dollars. you have to face reality and sell whatever value remains.
    10 Mar, 06:49 AM Reply Like
  • xtddd
    , contributor
    Comments (272) | Send Message
     
    high level debt will beat them down!
    10 Mar, 09:45 AM Reply Like
  • Bailout2009
    , contributor
    Comments (223) | Send Message
     
    Walter is probably the worst company being managed on the capital side. Management has no clue on what they are doing. Stock price does not lie and I have lost my shirt on this dog.
    10 Mar, 01:34 PM Reply Like
  • profitman
    , contributor
    Comments (22) | Send Message
     
    Didn't Goldman go bankrupt in the mortgage debacle? I think it's a case of the "pot calling the kettle black".
    15 Mar, 05:34 PM Reply Like
  • benitus
    , contributor
    Comments (1898) | Send Message
     
    profitman....I must be sleeping at the switch if and when GS did go bankrupt because I don't recall that happening at the time. Lehman went bankrupt, which precipitated the mortgage crisis, I believe.
    17 Mar, 12:14 AM Reply Like
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