Zacks Investment Research has initiated coverage on America West Resources (AWSR)
America West Resources owns a coal mine in Utah that is in the transition from development to production. The mine is currently producing from only one section with a capacity of 80,000 tons of coal a quarter. Another section should be on line in the first quarter of 2011 and a third section should be in production in the third quarter of 2011.
Over the past two years the company has signed contracts for over $300 million, to be delivered over five years, but has delivered only $22 million against those contracts. It has contracts for 1.2 million tons to be delivered over the next three years.
We expect rapid revenue growth, profits and a dramatic improvement in the balance sheet during 2011 and 2012.
The stock is forecast to outperform the market averages with a target price of $4.25
For a full copy of the research report, please email scr@zacks.com with the ticker AWSR as the title.
AMERICA WEST RS (AWSR): Free Stock Analysis Report
Zacks Investment Research
