ANR is currently selling for a third of it's tangible book value. If a private equity firm decided to buy it today, they would walk away with a %200 profit by just selling off assets alone. What makes you guys think that ANR isn't setting itself up to be bought out? They are the largest producer of metalurgical coal which is needed for construction. Emerging markets need tons of metalurgical coal and are importing it on an unprecedented scale and ANR is poised to meet that demand more than anyone else.
I think there's going to be a buyout in the next couple months, most likely from Peabody or maybe even a private equity consortium. If I could buy something for 1/3rd of it's tangible assets while everything else in it's peer group is selling at book value, I would buy it in a second.
My question to you would be why would any shareholder want to sell the company at 1/3 book value? Hopefully institutions and largest shareholders would say no to such a deal.As a puny shareloder, I would be pretty ticked off at management after all we have been through since acquiring Massey.
I would recommend January 2015 $10 LEAPS on the stock (if they're available) or start aquiring shares slowly but not using leverage because there's no telling how low (and attractive) the bears can push this thing.
ANR is still in a bullish trend since september though so when it goes back above $10, don't be tempted to book profits just yet. The real value of a company is the book value, plus goodwill and ANR's book value is around $22 a share. Why sell at $10 and sell yourself short?