Alpha Metallurgical slips as Spruce Point Capital issues 'strong sell' opinion

Alpha Metallurgical Resources

17/05/2022 14:20

** Shares of miner Alpha Metallurgical Resources Inc  AMR.N 
slip ~4% to $145.84 premarket
    ** Spruce Point Capital calls AMR a "no-edge commodity
company at cyclical and unsustainable highs" and says firm's
history is "plagued with red flags"; short seller sees 40%-60%
downside in stock
    ** "Despite recent strength in coal markets driving its
share price to all-time highs, we believe AMR is masking
significant financial stress in its core mining operations and
has used aggressive tax refunds to drive cash flow" - Spruce
Point Capital
     ** AMR did not immediately respond to a Reuters request for
comment
    ** Of 2 analysts covering AMR, 1 has "buy" rating, 1 "hold";
median PT is $181, an upside of 24% to current share price
    ** Stock has surged 148% YTD vs 13% in SPDR S&P Metals &
Mining ETF  XME.P 
   


 (Reporting by Anisha Sircar in Bengaluru)
 ((Anisha.Sircar@thomsonreuters.com;))