Why Alpha Natural Resources (ANR) Stock Hit a One-Year Low Today

NEW YORK (TheStreet) -- Shares of Alpha Natural Resources  (ANR) hit a 52-week low of $2.71 on Monday as coal stocks continue to suffer from oversupply and weak profits.

Chinese demand for coal could peak as soon as this year, Bloomberg reported. Declining renewable energy costs and stricter regulations to fight global warming would further damage coal stocks.

Last week, Goldman Sachs (GS) downgraded Peabody Energy (BTU) and reiterated its "sell" rating on Alpha Natural Resources. The firm said coal prices have not bottomed yet and believed metallurgical coal would decline even more made the following calls to suggest lower prices for coal stocks.

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The stock was down 7.72% to $2.75 at noon. More than 10 million shares had changed hands, compared to the average volume of 7,664,700.

Separately, 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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