IB Net Payout Yields Model

Is Now The Time For Alpha Natural Resources?

Though coal could not be more hated and analysts expect years of losses at Alpha Natural Resources (ANR), this might actually be the time for the stock. As written last month (see Is The Coal Supercycle Back?), the coal super cycle could be intact so investors need to keep an eye on this sector.

The world's third-leading producer of metallurgical coal faces a tough road ahead due to pricing impacted by structural changes for CAPP thermal coal and weak global demand for metallurgical coal. As with any commodity, the market can be very cyclical and volatile providing opportunities to invest at periods of severe weakness.

The company has been in a continuous restructuring mode for several years now allowing it to dramatically reduce costs for the next up cycle. Now might be the time to move back into Alpha Natural.

Read the full article at Seeking Alpha.

Disclosure: Long ANR. Please review the disclaimer page for more details. 


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