10 Best Stocks to Buy According to Billionaire David Einhorn

2. Core Natural Resources, Inc. (NYSE:CNR)

Greenlight Capital’s Stake Value: $148.78 million

Number of Hedge Fund Holders: 39

Core Natural Resources, Inc. (NYSE:CNR) produces, sells, and exports metallurgical and thermal coals in the US and internationally. Jefferies initiated coverage on the company’s stock with a “Hold” rating, setting the price objective at $93.00. The firm offered some insights into the company’s position in the broader US coal sector, demonstrating a unique asset base including exposure to both seaborne metallurgical and high-quality seaborne thermal coal markets, and the domestic US thermal coal market. As per the research firm, Core Natural Resources, Inc. (NYSE:CNR)’s diversified coal exposure and the inclusion of certain relatively low-cost mines can result in less cyclical cash flows as compared to other pure-play coal miners.

Core Natural Resources, Inc. (NYSE:CNR)’s two, world-class, complementary operating segments – metallurgical coal and high calorific value thermal coal – are expected to create a compelling opportunity for value creation and cash generation. Given the strategic asset base, low-cost mining operations, tremendous synergy potential, expansive logistics network, and industry-leading sustainability practices, Core Natural Resources, Inc. (NYSE:CNR) is exceptionally well-equipped to capitalize on the highly constructive, durable, long-term global market environment.

Black Bear Value Partners, an investment management firm, published its Q4 2024 investor letter. Here is what the fund said:

“Core Natural Resources, Inc. (NYSE:CNR): Both ARCH and CEIX were down ~18% during the month of December as fears of retaliatory tariffs (these have a large export component to their businesses), economic slowing and likely tax-loss selling drove the stocks lower. Like our discussion on BLDR, the long-term story remains intact, and we used this as an opportunity to further concentrate our investment. Due to their impending merger neither Company can buy back their stock. Once the merger is complete in Q1 there should be abundant cash to buy back stock. I am generally constructive on the merger as the Companies should be able to realize some modest synergies. My sense is more mergers will be coming to this sector given the depressed prices of the securities.

ARCH is one of the leading U.S. producers of high-quality metallurgical coal (“met coal”). This is the kind of coal used for steelmaking. ARCH also has a thermal coal business that contributes ~20% of their earnings. CONSOL is a leading producer of thermal coal.

Met coal demand is projected to climb for the next 25 years, driven by the economic development and urbanization in India and the rest of Southeast Asia. ~60% of the world’s population lives in Asia, where met coal demand is centered and where local sources are limited. Over the coming years demand will likely outstrip supply, leading to higher prices. There has been a severe lack of investment in met coal due to ESG concerns with investment peaking in 2014…” (Click here to read the full text)