International Coal (ICO) 25% Undervalued Disregarding Takeover Rumors (MEE) (ANR)
Tweet
Share
E-mail
Get Alerts ICO Hot Sheet
Join SI Premium – FREE
Shares of International Coal Group Inc. (NYSE: ICO) are up 6 percent in premarket movement on Monday as the stock is benefiting from a favorable article from Barron's over the weekend.
The report stated that the ICO has soared 120 percent in the last year, which has been pushed by takeover speculation following the recent agreement from Massey Energy Co. (NYSE: MEE) to merge with Alpha Natural Resources Inc. (NYSE: ANR).
Barron's states that the ICO could fetch a price of up to $14 per share, which would top the stocks high in 2008 of $13.28, but the point is also made that if no deal comes the company is an undervalued stock.
The company is a solid miner well positioned to benefit from the rising demand in metallurgical, which is a coal used in making steel.
Barron's sees ICO having the potential to advance 25 percent over the next 12 month, even if a deal does not emerge. The company could earn 63 cents per share this year on revenue of $1.35 billion if coal prices increase to a range of $71 to $76 a ton fro the current level of $68.
The company would earn $1.13 per share with levels increasing to $80 a ton in 2012.
ICO is also benefiting from its increased exposure to the rapidly emerging market of China and India.
Shares of International Coal are up 6.05 percent to $10.35 in premarket trade on Monday.
The report stated that the ICO has soared 120 percent in the last year, which has been pushed by takeover speculation following the recent agreement from Massey Energy Co. (NYSE: MEE) to merge with Alpha Natural Resources Inc. (NYSE: ANR).
Barron's states that the ICO could fetch a price of up to $14 per share, which would top the stocks high in 2008 of $13.28, but the point is also made that if no deal comes the company is an undervalued stock.
The company is a solid miner well positioned to benefit from the rising demand in metallurgical, which is a coal used in making steel.
Barron's sees ICO having the potential to advance 25 percent over the next 12 month, even if a deal does not emerge. The company could earn 63 cents per share this year on revenue of $1.35 billion if coal prices increase to a range of $71 to $76 a ton fro the current level of $68.
The company would earn $1.13 per share with levels increasing to $80 a ton in 2012.
ICO is also benefiting from its increased exposure to the rapidly emerging market of China and India.
Shares of International Coal are up 6.05 percent to $10.35 in premarket trade on Monday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- CVS Health names JPMorgan executive to board, Robbins exits
- Interactive Brokers adds SafetyPay funding for Latin America clients
Create E-mail Alert Related Categories
Insiders' BlogRelated Entities
Barron's, Alpha Natural Resources/Massey EnergySign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
