Etrade told me that it had a new offering: Contura Energy.

Usually, I would skip energy companies because I don’t know much about them….

But today, I just went ahead and read it~

So what do we learn from this prospectus?

  1. Coal is back? I guess since they are going public?
  2. Very long risk section—-very long. Lot of regulatory and economic risk.
  3. It’s an IPO after reorganization. It looks like lot of liabilities have been wiped out but I am no expert of reorganization. Remember, only invest in things that you know!
  4. Coal still accounts for 1/3 of US energy production and 28% of world energy production. So this industry will not disappear any time.
  5. Litigation about things being fishy during reorganization…hmmm…not good. Not sure what is going on but pass…
  6. Nothing so funky in accounting but given that it is a reorganization, I really don’t know what is going on.
  7. The firm has good borrowing capacity so that is good.

The prospectus is very long and interesting. There is tons of stuff to learn.

However, I just don’t know much about it. I should study it later but for now, I will pass Contura because I don’t much.

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