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Alpha Natural Resources (ANR +0.1%) is cut to Hold from Buy with a reduced target price of $8,...

Alpha Natural Resources (ANR +0.1%) is cut to Hold from Buy with a reduced target price of $8, down from $15, at Brean Murray, which cites ANR’s high leverage to met coal pricing and its likely effect on 2013 margins. The firm estimates ANR’s Central Appalachian thermal operations require $4/mcf natural gas prices to break even on fully loaded costs.
Comments (2)
  • 1712
    , contributor
    Comments (3) | Send Message
     
    I believe they have the customers in 80 other countries that will still require their products and they did get their credit lines renewed recently which is a plus. They are aslo deversified in some other fields. Remember 50% of all the power plants in the USA still use coal. I will take time and lot's of money to convert to natural gas even if it is somewhat cheaper. In 2011 they did 9 Billion in volume so if they slip a good bit it should not kill them.

     

    Jim
    19 Jul 2012, 03:02 PM Reply Like
  • papayamon
    , contributor
    Comments (1061) | Send Message
     
    we aren't going to get $4/mcf any time in the next year, for sure. it's going to be a lean year for anr shareholders. if you can get in at the bottom, it's going to be a great long term hold :).
    19 Jul 2012, 06:01 PM Reply Like
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