Alpha Metallurgical Resources: The 'Fat Pitch' You've Been Waiting For

Summary

  • Alpha Metallurgical Resources represents a very favorable risk/reward at ~1.1X EV/EBITDA.
  • The coal industry is not going anywhere.
  • The company is extremely focused on allocating capital to shareholders.
  • Risks can easily be overcome by the low valuation and growth potential.

Coal and the hands of a miner, Concept, the rising price of coal, Hard mining and industrial work

Andrzej Rostek

Investment Thesis

Alpha Metallurgical Resources (NYSE:AMR) is the largest domestic producer and exporter of metallurgic coal and also produces some thermal coal. The firm has enjoyed substantial success from the recent surge in coal prices despite production

This article was written by

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Zachary Marx, CFA, is the Director of Quantitative Strategies at Seeking Alpha. Zach has over a decade of experience consulting with North American institutional buy-side investment managers on data, investment strategy, and quantitative modeling. He has been a critical force behind transforming Seeking Alpha’s stock ratings, dividend ratings, ETF ratings, and analytical tools to deliver industry-leading performances.Zach has implemented production-ready quantitative factor strategies for client mandates that are responsible for running billions of dollars in AUM. He brings expertise in data processing, data visualization, financial modeling, risk modeling, transaction cost modeling, backtesting, portfolio optimization, and portfolio attribution and analysis.Zach helps run Alpha Picks, Seeking Alpha’s very own Investing Group designed to create a best-in-class portfolio for long-term investors.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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