NCOC - National Coal Corp. (NASDAQ Stock)

[thegreatgate]

Another (coal) stock that is low-priced and could be good for a flip here around 80 cents...

52-week range: $0.56 - $8.60



National Coal Corp. is engaged in mining, processing and selling bituminous steam coal from mines located in East Tennessee and North Alabama and, until March 31, 2008, in Southeast Kentucky. The Company owns the coal mineral rights to approximately 65,000 acres of land and leases the rights to approximately 17,700 additional acres excluding the Southeast Kentucky properties, known as Straight Creek, sold on March 31, 2008. As of December 31, 2008, its mining complexes included three active and two inactive underground mines, one underground mine in the development stage, one inactive and six active surface mines, and one highwall mine. In addition, it had two preparation plants and two unit train loading facilities in Tennessee served by the Norfolk Southern (NS) railroad. It holds seven permits that allow it to open new or re-open existing mines close to its operations. As of December 31, 2008, it controlled approximately 40.8 million estimated recoverable tons of coal reserves.

[BadThad]

Good chart play and trading new it's 52 wk low. Easy to see what happened to the stock after the last qtr report:

http://www.google.com/finance?q=ncoc

National Coal Corp. Reports Second Quarter 2009 Results
4:00p ET August 10, 2009 (Business Wire)
National Coal Corp. (Nasdaq: NCOC):

-- Second quarter revenues increased 11.7% to $35.3 million from $31.6 million during the year-ago quarter.

-- Tons of coal sold decreased 3.2% to 457,082 tons, from 472,216 tons during the year-ago quarter, with a significant drop of 24.1% in Alabama tonnage.

-- Average price per ton increased 16.8% to $75.15 from $64.32 in the same year-ago quarter.

-- For the six months ended June 30, 2009, net cash flow provided by operating activities was a positive $2.5 million versus a negative $5.8 million during the year-ago period.

-- On July 21, 2009, National Coal of Alabama (NCA) defaulted on its $60 million credit facility, and as of August 3, 2009, the lender foreclosed on NCA. As of June 30, 2009, National Coal of Alabama accounted for approximately 56% of National Coal Corp.'s debt and liabilities, approximately 39% of its consolidated revenues for the six months then ended, and about 17% of its December 2008 total reserves.

-- Pro Forma Balance Sheet and Statement of Operations for National Coal Corp. are attached.

National Coal Corp. (Nasdaq: NCOC), a Central and Southern Appalachian coal producer, reports that for the three months ended June 30, 2009, it achieved total revenues of $35.3 million based primarily on the sale of 457,082 tons of coal. In the same prior-year period, National Coal generated revenues of $31.6 million primarily through the sale of 472,216 tons of coal.

For the three months ended June 30, 2009, National Coal reported a net loss of $6.34 million or $0.19 per share versus a net loss of $9.07 million or $0.30 per share during the year-ago quarter. The Company also reported an improved and positive adjusted EBITDA of $2.3 million versus a negative adjusted EBITDA of $1.3 million reported in the year-ago quarter.

"These results include those of NCA, a subsidiary that suffered a significant decline in sales and an increase in costs in the second quarter, which resulted in foreclosure early in the third quarter," says Daniel A. Roling, President and CEO of National Coal Corp. "However, as I have previously mentioned, National Coal Corp. and our other subsidiaries, which operate in Tennessee, will continue to operate independent of what has occurred in Alabama."

"There has been much speculation and rumor associated with this transaction and what it will do to our Company," says Roling. "While we are obviously disappointed we couldn't meet the obligations of the credit facility, we can now report that the weakest part of our organization will no longer factor into our future performance."

Effects of NCA on National Coal Corp.

National Coal Corp. acquired its Alabama operations in October 2007, financed principally through the issuance of $60 million in 12% Notes due 2012. On July 21, 2009, NCA defaulted on this obligation. On August 3, 2009, the holders of the 12% Notes due 2012 foreclosed on the outstanding capital stock of NCA. As a result, the entire debt obligation in default of $64.3 million has been classified as a current liability in the accompanying balance sheet at June 30, 2009.

On a Pro Forma basis as of June 30, 2009 National Coal Corp. Stockholders' equity would be $3.8 million higher than reported.

National Coal Corp. - Pro Forma Tennessee Stand Alone Financial Results

-- Second quarter revenues from Tennessee operations increased 35.2% to $22.6 million up from $16.7 million during the year-ago quarter.

-- Tons of coal sold increased 15.0% to 290,508 tons up from 252,696 tons during the year-ago quarter.

-- The average price per ton increased 21.8% to $74.81 from $61.42 in the same year-ago quarter.

The following results are based on assumptions that reflect the elimination of all assets and liabilities from the disposition of NCA, the gain on the sale as if it had occurred on June 30, 2009, and the elimination of all revenues and expenses of NCA. National Coal Corp. reports that for the period ended June 30, 2009, it achieved total revenues of $22.6 million based primarily on the sale of 290,508 tons of coal. In the same prior-year period, National Coal generated revenues of $16.7 million primarily through the sale of 252,696 tons of coal.

For the three months ended June 30, 2009, National Coal reported a net loss of $3.2 million or $0.09 per share versus a net loss of $5.2 million or $0.17 per share during the prior-year period.

"As a result of the improved pricing and volumes, the Company has begun to generate cash from its operating activities compared to the year-ago period," says Daniel Roling, "However, our ability to continue to show improvement will be a function of our customers' ability to receive the tonnage they have contracted to take. At present, we see no further deterioration from current levels."

Roling explains, "Even though our balance sheet remains challenged, a result of the disposition of NCA is that our total debt has declined from $113.1 million to $47.7 million. Also, Stockholders' deficit declines from a negative $8.0 million to a negative $4.2 million, and is anticipated to have a net positive adjustment in the third quarter as a result of the disposition of NCA."

No creditor of NCA, including the holders of the 12% Notes due 2012, has any recourse to National Coal Corp. or its other subsidiaries including our Tennessee operating entities for any liabilities of NCA, including liabilities arising under the credit agreement. Therefore, the operations of National Coal Corp. and its other subsidiaries will continue independently of any actions taken with respect to NCA and its assets.

Outlook

"National Coal Corporation has a strong asset base and significant future organic growth potential," says Roling. "The Company's assets include a strategic reserve position of 65,000 contiguous acres where it owns all the coal mineral rights, two preparation plants, a railroad load-out facility, and a 42 mile short line railroad that connects to the Norfolk Southern main line. In addition, it owns another railroad load-out on the Norfolk Southern main line, and leases an additional 14,000 acres."

"Looking towards the future, National Coal has a strong reserve position of about 34 million recoverable tons, with the potential to increase that through an active drilling program. At present, the Company is working towards obtaining additional permits for new operations. It is management's belief that National Coal is well positioned operationally to significantly increase production through organic growth over the next five years, subject to market conditions."

"The challenge facing National Coal is its ability to continue to show steady improvement in its operational performance, improve our liquidity, and strengthen our financial position. Also, lowering our costs is a key objective," states Roling. "Costs are always a focus, but we are renewing our focus to reduce costs in all areas, including reduction in compensation for top management and members of our Board of Directors."

During the remainder of 2009, management expects to spend approximately $1.0 million to $1.5 million to maintain existing assets in Tennessee. National Coal Corp. expects to report a gain on the disposition of NCA in the third quarter 2009 due to its negative equity position in NCA. (See footnotes to Pro-Forma Financial Statements.)

"As a result of shipping 568,585 tons from prior and new contracts during the first half, realized prices of $71.89/t were lower than those we anticipate receiving during the second half of the year. Tons committed under contract for the balance of the year total 617,886 tons at $74.45/t; the Company does not anticipate selling any additional tons on the spot market at this time."

[greencat]

NCOC has a real nice set-up. I expect it to make a higher high. Looks primed to make a move. RSI bouncee off the 50 and macd turning back up.

NCOC Chart