American Story

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AREC -- USA Stock  

USD 5.20  0.14  2.77%

American Resources Average Assets are projected to increase significantly based on the last few years of reporting. The past year's Average Assets were at 67.39 Million. The current year Invested Capital is expected to grow to about 28.1 M, whereas Earnings Before Interest Taxes and Depreciation Amortization EBITDA are forecasted to decline to (58.6 M). The basic aim of this article is to give investors our perspective on American for March. We will forecast American Resources value for investors.
Published over three weeks ago
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Our current forecast of American (NASDAQ:AREC)
American Resources is OVERVALUED at 4.29 per share with modest projections ahead. About 54.0% of American Resources shares are held by company insiders. Insiders ownership of American Resources refers to the amount of American Resources equity owned by American officers, directors, relatives of the leadership team, or anyone who has access to private information before it's made available to the public. Check out our latest analysis of American, including its current ownership diagnostics.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as American Resources Corp. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for American Resources

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of American Resources' stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of American Resources in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as American Resources. Your research has to be compared to or analyzed against American Resources' peers to derive any actionable benefits. When done correctly, American Resources' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in American Resources Corp.

How important is American Resources's Liquidity

American Resources financial leverage refers to using borrowed capital as a funding source to finance American Resources Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. American Resources financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between American Resources's total debt and its cash.

How American utilizes its cash?

To perform a cash flow analysis of American Resources, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash American Resources is receiving and how much cash it distributes out in a given period. The American Resources cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
American Resources Net Cash Flow from Operations is projected to decrease significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at (17.29 Million)

Acquisition by Kirk Taylor of 25000 shares of American Resources subject to Rule 16b-3

Legal trades by American Resources insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
American insider trading alert for grant of 2021 option by Kirk Taylor, Chief Financial Officer, on 4th of February 2021. This event was filed by American Resources Corp with SEC on 2021-02-04. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down the case for American Resources

The current price rise of American Resources could raise concerns from investors as the firm it trading at a share price of 6.00 on very low momentum in volume. The company executives may have good odds in positioning the firm resources to exploit market volatility in March. The stock standard deviation of daily returns for 30 days investing horizon is currently 9.82. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the American Resources partners.

Returns Breakdown

Return on Assets(1.5)
Return on Equity270.28
Return Capital(2.85)
Return on Sales(3.44)

Over 3 percent rise for American Resources. What does it mean for investors?

Current expected short fall is at -8.19. American Resources is displaying above-average volatility over the selected time horizon. Investors should scrutinize American Resources independently to ensure intended market timing strategies are aligned with expectations about American Resources volatility.

Our Final Take On American Resources

Whereas some other companies within the coking coal industry are still a little expensive, even after the recent corrections, American Resources may offer a potential longer-term growth to investors. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor drop any shares of American Resources at this time. The American Resources risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to American Resources.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of American Resources Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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