Alpha Natural Resources, Inc. (OTCMKTS:ANRZ) Crashes After Bloomberg Report
Alpha Natural Resources, Inc. (OTCMKTS:ANRZ) lost another 13.04% of its market value on Friday, when the market had time to react to a Bloomberg article that hit the web the previous evening.
According to Bloomberg authors Jodi Xu Klein and Laura J Keller “according to three people with direct knowledge of the matter”, who remained anonymous, the company is to receive a loan from Citigroup Inc. and Davidson Kempner Capital Management to help fund the company through bankruptcy.
While a filing announcing the bankruptcy has not hit the web yet, the impact the article has had on the company’s share prices is already obvious. Between that, the SeekingAlpha articles, and the fact that Aug. 1 brings the maturity of $109 million worth of the company’s convertible notes, it is easy to see why investors flinched away from ANRZ in last week’s final session.
The market certainly hasn’t been kind to ANRZ recently, but that is to be expected in the “worst commodities slump in more than a decade”, as Bloomberg called the present situation.
One thing is certain – bankruptcy filing or not, ANRZ‘s outlook appears pretty grim. Both NYSE and the OTC Markets haven’t been kind to the ticker at all – and by the look of things, things may get a lot worse for ANRZ before they get any better – if they get better at all.
This is not to say that there is no money to be made from trading the ticker – on the contrary, an opportunity to do so may well present itself sooner rather than later. However, in order to come out on top, investors that wish to do so will have to be very well informed and extremely careful and more than a little lucky to boot.