Northern, WI 06/18/2013 (usastockreport) – Shares of Alpha Natural Resources Inc (NYSE:ANR) entered into oversold territory, as the stock continued its downfall with volume of 20.51 millions exchanged and closed at $5.67 for the day. The company with market capitalization of $1.25 billion has outstanding shares at 220.80 million.
A bullish investor could look at ANR’s 29.2 reading as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.
Alpha Natural Resources is one of the America’s leading producers of coal. Alpha is ranked as the world’s sixth supplier of coal and third largest supplier of metallurgical coal. The company generates light and heat which helps in the making of steel which is used in the construction of roads, bridges and buildings, etc. Alpha is expecting to ship between 83 and 93 million tons of coal during 2013 which includes Eastern metallurgical coal, Eastern steam coal, and Western steam coal out of the PRB ranging from from 19 to 22 million tons, 27 to 3 1 million tons and 37 to 40 million tons respectively.
The U.S. coal industry is struggling with the falling demand of the coal domestically, and low prices for exports. The New emissions regulations have caused hundreds of coal plants to close down in the last few years, and the low price of natural gas has been a death knell for several companies which couldn’t find low cost supply.
Most of the investors hope that exports will make up for the loss of domestic consumption but the problem is that the exports aren’t growing as quick as the fall in consumption of coal.
The fall in Alpha’s share price is due to the less production and demand of coal. The investors have high hope from exports to India and China.