The Panic-Proof Portfolio (Stockchase Research)Alpha Metallurgical ResourcesAMRPAST TOP PICKMar 18, 2025
(A Top Pick Jan 14/25, Down 27.2%)Stockchase Research Editor: Michael O’Reilly
Our 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%
Has gone under. The 100th airline to go bankrupt since 1990. Airline industry in its lifetime has never made money. Would not touch any of them. Occasionally when an airline goes bankrupt a judge throws something to the shareholders.
Our 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%.