Alpha Natural Resources Shares Plunged: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Alpha Natural Resources (NYSE: ANR  ) closed down more than 17% after adjusted earnings came in well short of estimates.

So what: Alpha, now the world's third-largest coal miner, booked $0.96 a share in second-quarter earnings after excluding costs related to its acquisition of Massey Energy and other special items. Revenue rose 59.3% to $1.59 billion. Analysts were looking for $1.12 a share on $1.47 billion in revenue, according to data compiled by Yahoo! Finance.

Now what: The selloff may be overdone. Only one month's worth of Massey's performance was included with the results, and pricing was already trending higher. In short: Earnings miss notwithstanding, all the reasons my Foolish colleague Christopher Barker liked Alpha in January appear to still be valid. Do you agree? Disagree? Weigh in using the comments box below.

Interested in more info on Alpha Natural Resources?Add it to your watchlist.

Fool contributorTim Beyers is a member of theMotley Fool Rule Breakers stock-picking team. He didn’t own shares in any of the companies mentioned in this article at the time of publication. Check out Tim'sportfolio holdings andFoolish writings, or connect with him on Google+ or Twitter, where he goes by @milehighfool. You can also get his insightsdelivered directly to your RSS reader.

Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insights makes us better investors. The Motley Fool has adisclosure policy.


Read/Post Comments (1) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On August 10, 2011, at 1:44 PM, spor513 wrote:

    I agree it is worth holding. The liability from the purchase of Massey will just be blip, but not a great concern. The use of coal is rising around the world as can be seen in reports, but more telling is the size of the coal piles in Norfolk, VA ready to ship.

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11/28/2014 12:58 PM
ANR $2.08 Down -0.18 -7.96%
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