Stock Alert for Westinghouse Solar Inc. (WEST)
  • Stock Alert for Akeena Solar Inc. (WEST)
  • Stock Alert for Minerco Resources Inc. (MINE)
  • " />

    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: Reuters.com, 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.

    Source:

    http://biz.yahoo.com/e/111121/awsr.ob10-q.html

    Financial Strength (24-Feb-12)

    Company

    Industry

    Sector

    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: Reuters.com, SEC Filings.

    Technical Analysis

    Source: http://stockcharts.com

    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

    DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority.  We are neither licensed nor qualified to provide investment advice.

    The information contained in our report should be viewed as commercial advertisement and is not intended to be investment advice.  The report is not provided to any particular individual with a view toward their individual circumstances. The information contained in our report is not an offer to buy or sell securities.  We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

    Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company.  An individual should never invest in the securities of any of the companies profiled based solely on information contained in our report.  Individuals should assume that all information contained in the report about profiled companies is not trustworthy unless verified by their own independent research.

    Any individual who chooses to invest in any securities should do so with caution.  Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested.  Always research your own investments and consult with a registered investment advisor or licensed stock broker before investing.

    Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934.  Subscribers are cautioned not to place undue reliance upon these forward looking statements.  These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated.  Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC.  You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.

    We are committed to providing factual information on the companies that are profiled.  However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions.  We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so.  Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable.

    To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information).

    We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org.

    Leave a Reply

    Your email address will not be published. Required fields are marked *