Part of the issue, I think, is that they did not provide any info besides reduction in workforce and cost savings. What are they going to focus on going forward? What is the future of the pipeline? They didn't talk about this.
Will be interesting to get update from management. Will cash burn decrease going forward? I would think so. Also what are their plans and prospects regarding the pipeline?
why do you think analysts gave such a low price target after the news? seems ridiculous. $2? Would think they would give at least cash value or $3 as a minimum. I think this is why stock sank so low.
TD Ameritrade news feed:
Verastem: As of End of 2Q 2015, Verastem had $132.1M in Cash and Cash Equivalents VSTM
ah, ok. Thought you were saying $1.4 in addition to $1.2. So................this doesn't help bondholders either. Especially unsecured.
Date Open High Low Close Volume Adj Close*
15-Sep-15 0.03 0.03 0.02 0.03 11,000 0.03
14-Sep-15 0.02 0.03 0.02 0.03 29,100 0.03
11-Sep-15 0.03 0.03 0.03 0.03 21,200 0.03
10-Sep-15 0.03 0.03 0.03 0.03 17,000 0.03
9-Sep-15 0.02 0.04 0.02 0.03 49,600 0.03
8-Sep-15 0.05 0.05 0.02 0.04 36,800 0.04
4-Sep-15 0.05 0.05 0.05 0.05 5,900 0.05
3-Sep-15 0.05 0.06 0.05 0.05 207,400 0.05
2-Sep-15 0.05 0.06 0.05 0.05 77,200 0.05
1-Sep-15 0.06 0.07 0.03 0.05 316,700 0.05
31-Aug-15 0.02 0.06 0.02 0.06 418,400 0.06
Burdened with $4 billion in debt, Alpha is trying to revamp its business to survive the slump in coal prices and avoid being pushed to the chapter 11 auction block.
"We think the debtors are well positioned in this case to move forward and get to a reorganization," said Mr. Leblanc. "Nobody wanted a liquidation here."
Existing senior lenders are pitching in for the bankruptcy financing, a loan that carries $19.4 million in fees and gives lenders additional protection if Alpha's turnaround effort hits the rocks.
Alpha is believed to be in better shape than other coal mining companies that have sought bankruptcy protection, such as Patriot Coal Corp. and Walter Energy. With a significant amount of cash and an estimated $600 million of assets that are free of secured claims by the banks, Alpha is in a better position to negotiate with senior lenders, court papers say.
Unsecured creditors and the United Mine Workers of America campaigned for improvements in the loan deal, citing the company's significant collection of assets that are free of lender claims. According to critics, Alpha had failed to make the most of its sturdy negotiating position and gave up too much to get the loan.
In the end, Alpha and the lenders agreed the new financing would potentially tie up only $300 million of the company's free assets, on terms that creditors' lawyers said wouldn't impede the chances of a recovery for unsecured creditors.
Alpha mines for coal in Kentucky, Pennsylvania, Virginia, West Virginia and Wyoming. The company sought chapter 11 protection on Aug. 3.
10:51 EDT - Alpha Natural has agreed to pay $19.4M in fees for bankruptcy financing which creditors say is a bad deal. Unsecured creditors are in talks with the coal company to resolve their objections to the loan, which is up for court approval today. Creditors contend Alpha has at least $600M of assets which are free of claims by the banks and shouldn't sign them away in order to land the loan. Lawyers for unions contend Alpha is making a gift of its assets to secured lenders; they say the company needs the loan to save its business. (email@example.com)
(END) Dow Jones Newswires
They are currently trading for about 1 X 2011-2013 earnings, so if they ever got back to that level, this would be a $50-$60 stock, at least. Problem is that prices for their product have been dropping hard as of late.
The adjusted diluted EPS estimate for 2016 has been raised from $1.16 to $1.17