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) jumped 15% today after selling an asset.
So what: The company is selling its 50% stake in a natural gas joint venture to Rice Energy. The deal calls for $100 million in cash for the asset and $200 million in Rice Energy common stock, which plans to go public in early 2014.
Now what: The deal will give Alpha Natural more cash to try and turn around core coal operations, which have been in rapid decline. What this doesn't do is fundamentally change the company's investment thesis because the coal market is still very weak. I'd still stay out of this stock because I think Alpha Natural will end up burning through the money made from this sale before it sees a long-term improvement in the coal market.
