Why Alpha Natural Resources (ANR) Stock Is Declining Today

Editors Note: This article has been updated after previously reporting that Alpha Natural Resources released its second quarter earnings results on September 6, the correct date is August 6.

NEW YORK (TheStreet) -- Alpha Natural Resources (ANR) shares are down -3% to $3.52 on Monday following a Bloomberg news report that new EPA emissions standards will boost sales of coal from the Illinois basin while harming sales in the Appalachian region where Alpha Natural Resources operates.

New standards call for energy companies to equip their facilities with sulfur dioxide scrubbers, allowing them to purchase the cheaper, sulfur rich Illinois basin coal that was previously unusable.

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Last month the metallurgical coals and thermal coal supplier reported a second quarter net loss of 56 cents per diluted share that was ahead of analysts expectations by 15 cents, but was worse than the 55 cents per share loss it reported during the same period last year.

The company reported revenue of $1.1 billion that was in line with analysts expectations for the quarter.

TheStreet Ratings team rates ALPHA NATURAL RESOURCES INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate ALPHA NATURAL RESOURCES INC (ANR) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, poor profit margins and generally high debt management risk."

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