Alpha Natural Resources, Inc. (OTCMKTS:ANRZ) Recovers Some Ground
Alpha Natural Resources, Inc. (OTCMKTS:ANRZ) managed to bounce 23.80% up the charts yesterday, as investor interest in the company was renewed once more.
The coal giant’s fall from the NYSE was hard. Two devastating red sessions marked its de-listing from the prestigious exchange, but that’s about all it took for the shock to pass and OTC Markets investors to take up the initiative.
And, some of them must have reasoned, why not commit to ANRZ stock? Here’s a working company with a market cap of less than $5 million, that’s making millions of dollars of quarterly profit. Its latest financial report looked unimpressive by the standards of the NYSE, but show numbers way above and beyond what an OTC Markets pinksheets company can usually boast:
- Total revenues – $841 million
- Total current assets – $1.5 BILLION
- Total current liabilities – $943 million
- Net income – $68 million
This being the case, it is no wonder that many investors decided to load the boat.
However, said investors would do well to remain vigilant. Although ANRZ seems to be doing better than most, an immediately obvious potential point of concern they should be wary of is the fact that it has $371 MILLION wort of convertible notes that are due currently.
True, with a discount of 2.375% and 3.25%, said notes hardly suffer from the toxicity that plagues most of the filings of the pinksheets tier of the OTC Markets.
Still, ANRZ has 400 million shares authorized and just 222 million outstanding – so the threat of dilution should probably not be underestimated.
