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    Trade Alert for America West Resources Inc. (AWSR)

    America West Resources Inc. (AWSR) is an established domestic coal producer engaged in the mining of clean and compliant (low-sulfur) coal. The majority of its coal is sold to utility companies for use in the generation of electricity. During 2010, the Company entered into contracts with four customers to deliver a certain quantity of coal at fixed prices, subject to other terms and conditions that are standard in the industry. With respect to customers not subject to long-term contracts, AWSR has short-term or market delivery and price contracts that it negotiates and performs on a continuous basis. The Company’s strategy is to have a combination of long-term and short-term delivery contracts. AWSR operates the Horizon Mine located in Carbon County, Utah.  It intends to expand mining operations in this mine and acquire and develop additional mining properties.

    Share Statistics (24-Feb-12) FY2009 FY2010 % Chg Q32010 Q32011 % Chg
    Symbol AWSR Revenue, $Mn 11.01 10.07 -8.5% 2.83 3.59 26.9%
    Current price $0.65 Gross marg. 6.7% 20.0% 198.5% 21.2% 5.6% -73.6%
    52wk Range: $0.14-$2.20 Oper. margin -109.1% -114.6%
    Avg Vol (3m): n/a Net margin -79.0% -160.4% 103.0% -137.1% -171.9% 25.4%
    Market Cap. 41.38M
    Shares Outstanding 64.66M EPS, $ -0.35 -0.46 31.4% -0.14 -0.07 -50.0%

    Source:, SEC Filings.

    Investment Highlights

    Shares of America West Resources Inc. (AWSR) plunged nearly 50% to close Friday at $0.65, snapping two straight sessions of gains, without any news driving the stock price movement. Trading volume rose to over 9.84million shares, about 35 times the 30-day average. Over the past 52 weeks, the stock has ranged from a low of $0.14 to a high of $2.20.

    AWSR shares have gained 168.2% in the last five days and 222.0% in the last month.  Year-to-date, the stock is down 64.0%.

    AWSR specializes in both coal extraction and coal sales. Since the Company’s acquisition of the Utah Horizon Coal Mine, AWSR has mined an average of 280 K tons of coal within the last four years.

    With a team of seasoned management and experience operating in the western region, the Company believes it is on its way to becoming a significant player in the western coal market.

    AWSR reported revenue of about $3.6 million for the three months ended September 30, 2011, nearly 27% up from $2.8 million reported in the comparative period of the prior year. The increase can be attributed to a 23% increase in coal production in 2011 compared to the previous year.

    The Company had coal production of about 92 K tons for the 2011 third quarter, compared to about 75,000 tons at an average price of $37 per ton in the year-ago period. The increase in production in 2011 is primarily due to the Company deploying a second continuous miner in the first quarter of 2011, and the Company intermittently idling the mine in the first quarter of 2010 due to lower demand for coal at that time.

    AWSR stated that all coal sales revenue during the third quarter of 2011 was related to coal produced from its Horizon coal mine operations by its wholly-owned subsidiary, Hidden Splendor Resources Inc.

    The Company’s production costs during the three months ended September 30, 2011 were about $3.4 million, an increase of about 52% from 2.2 million reported in the comparable quarter of the previous year.

    AWSR realized a net loss of $6.2 million for the 2011 third quarter, up from $3.9 million of net loss reported in the prior-year period. The Company primarily attributed the result to a $3.8 million negative variance in net other expenses, partially offset by the approximate $1.5 million positive variance in loss from operations.


    Financial Strength (24-Feb-12)




    S&P 500

    Quick Ratio (MRQ) 0.04 0.03 0.55 0.61
    Current Ratio (MRQ) 0.04 0.04 0.78 0.96
    LT Debt to Equity (MRQ) 4.16 1.80 11.95 165.56
    Total Debt to Equity (MRQ) 182.66 2.53 16.52 223.19
    Interest Coverage (TTM) -4.57 0.06 3.81 26.42

    Source:, SEC Filings.

    Technical Analysis


    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    Feb24-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
    Liberty Coal Energy Corp. LBTG 0.12 7.03M n/a n/a n/a n/a
    SinoCoking and Coke Chemical Industries Inc. SCOK 2.90 61.16M n/a n/a 0.45 n/a
    China Coal Energy Co. Ltd. CCOZF 1.28 850.37M n/a n/a n/a n/a
    Yanzhou Coal Mining Co. Ltd. YZC 24.75 12.33B n/a n/a n/a n/a
    Nonmetallic Mineral Mining Median       14.09 n/a 1.64 n/a
    America West Resources Inc. AWSR 0.64 41.38M n/a n/a 1.86 1.26

    Source: Thomson Financial

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