Opinions
The Panic-Proof Portfolio (Stockchase Research)
AMR Corporation
AMR-N
TOP PICK
Oct 22, 2024
Stock price when the opinion was issued
You might be interested:
Premium contentAlpha metallurgical resources (nyse: amr) is a tennessee-based mining company with operations across virginia and west virginia. with customers across the globe, high-quality reserves and significant port capacity, alpha reliably supplies metallurgical products to the steel industry. alpha metallurgical resources is committed to operating safely, efficiently, and responsibly, with customer service second-to-none and an ongoing focus on continuous improvement. Social media mentions are up 300% in the past 24h.
Premium contentWe reiterate this US based producer of coal for steel production as a TOP PICK. With the new US Adminstration placing a high priority on "Made In America", this company is well positioned for both domestic and foreign steel demand growth. We like that cash reserves are growing, while debt is retired and shares bought back. It trades at 7x earnings, 1.5x book and supports a 22% ROE. We continue to recommend a stop at $140, looking to achieve $247 -- upside potential of 28%. Yield 0%
Premium contentOur PAST TOP PICK with AMR has triggered its stop at $140. To remain disciplined, we recommend covering the position at this time. Combined with our previous guidance, this will result in a net investment loss of 29%.
AMR operates 19 mines in the US Virginias, where the coal produced is used for steel production. Despite challenges within the economy, management believes production will finish on the higher end of guidance. The company is building cash reserves, while aggressively buying back shares and retiring debt. It trades at 6x earnings, 1.6x book and supports a 28% ROE. We recommend setting a stop-loss at $140, looking to achieve $264 -- upside of 28%. Yield 0.5%
(Analysts’ price target is $332.00)