AMR - Got Coal? Alpha Metallurgical Resources Just Got Another Tailwind

2024-07-03 08:37:13 ET

Summary

• Alpha Metallurgical Resources has outperformed the S&P 500, bolstered by a fire at Anglo American's Grosvenor mine that reduced global coking coal supply.
• The fire underscores coal's supply risks amid high demand, potentially tightening the market further. AMR's strong reserves and export focus position it well.
• Despite current price headwinds, AMR remains profitable and strategically invests in buybacks, making it an attractive, albeit volatile, investment opportunity.

Introduction

It's time to talk about coal.

In this case, we'll discuss Alpha Metallurgical Resources ( AMR ) , a company I called " A compelling investment opportunity for those comfortable with volatility" in my most recent article, published on May 6.

Since then, shares of the miner have risen by 8.5%, beating the impressive 6.2% gain of the S&P 500 by a decent margin....

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