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?
- Coal is back? I guess since they are going public?
- Very long risk section—-very long. Lot of regulatory and economic risk.
- 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!
- Coal still accounts for 1/3 of US energy production and 28% of world energy production. So this industry will not disappear any time.
- Litigation about things being fishy during reorganization…hmmm…not good. Not sure what is going on but pass…
- Nothing so funky in accounting but given that it is a reorganization, I really don’t know what is going on.
- 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.