Larry Berman CFA, CMT, CTAAlpha Metallurgical ResourcesAMRWAITJul 27, 2026
Cyclical sector, so it's for traders. If you're a value trader, you're looking to buy dips. If you're a momentum trader, you're looking to buy high and sell higher. Pretty significant pullback from recent high. If you're a dip trader, you'll probably do OK.
Sector will do well when economy's booming. He'd argue that we've already priced in the AI boom, so the catalyst isn't there for the next upside move. Economic risk for slowing. Wait for it to go below $100 for decent risk/return.
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.
Cyclical sector, so it's for traders. If you're a value trader, you're looking to buy dips. If you're a momentum trader, you're looking to buy high and sell higher. Pretty significant pullback from recent high. If you're a dip trader, you'll probably do OK.
Sector will do well when economy's booming. He'd argue that we've already priced in the AI boom, so the catalyst isn't there for the next upside move. Economic risk for slowing. Wait for it to go below $100 for decent risk/return.