In this article, we discuss 4 stocks to sell now according to Mitch Cantor’s Mountain Lake Investment. If you want to read our detailed analysis of Cantor’s history and hedge fund performance, go directly to 8 Stocks to Sell Now According to Mitch Cantor’s Mountain Lake Investment.
4. EMX Royalty Corporation (NYSE:EMX)
Number of Hedge Fund Holders: 3
Percentage Decrease in Stake in Q4: 100%
EMX Royalty Corporation (NYSE:EMX) and its subsidiaries are involved in the exploration of metals and minerals properties and the generation of royalties from them. Among the hedge funds being tracked by Insider Monkey, Toronto-based investment firm Sprott Asset Management is a leading shareholder of EMX Royalty Corporation (NYSE:EMX), owning 4.01 million shares worth more than $9.08 million as of December 31.
Mountain Lake Investment had no position in Martin Marietta Materials, Inc. (NYSE:MLM) in the fourth quarter after it sold off its 234,100 shares in EMX Royalty Corporation (NYSE:EMX) during Q4, which were worth $599,000 on September 30, thus adding it to the list of stocks to sell according to Mitch Cantor’s Mountain Lake Investment. The hedge fund first bought a stake in EMX Royalty Corporation (NYSE:EMX) in the first quarter of 2021.
Founded in 1996, EMX Royalty Corporation (NYSE:EMX) has attracted investments from just 3 of the hedge funds tracked by our database, with their positions valued at $9.33 million at the end of Q4, down from 4 hedge funds with $9.16 million in holdings a quarter earlier.
3. Cameco Corporation (NYSE:CCJ)
Number of Hedge Fund Holders: 37
Percentage Decrease in Stake in Q4: 100%
Cameco Corporation (NYSE:CCJ) is a company that sells uranium, with Uranium and Fuel Services being its two primary segments in which it works. At the end of the fourth quarter of 2021, 37 hedge funds tracked by the database of Insider Monkey held stakes worth $780.13 million in Cameco Corporation (NYSE:CCJ), up from 35 funds in the preceding quarter, which held positions worth $755.74 million.
However, in the fourth quarter of 2021, Mitch Cantor’s Mountain Lake Investment sold its 65,000 shares in Cameco Corporation (NYSE:CCJ), which were valued at $1.41 million at the end of Q3.
Kopernik Global Investors is the largest shareholder of Cameco Corporation (NYSE:CCJ), with a stake valued at $195.86 million as of the end of the fourth quarter of 2021. Following Kopernik Global Investors, MFN Partners came in second with a $121.68 million investment.
2. Antero Midstream Corporation (NYSE:AM)
Number of Hedge Fund Holders: 16
Percentage Decrease in Stake in Q4: 100%
Antero Midstream Corporation (NYSE:AM) is a midstream energy company that owns, manages, and develops assets to support Antero Resources’ production and completion activities. On April 13, Antero Midstream Corporation (NYSE:AM) declared a quarterly dividend of $0.225 per share, in line with the previous.
Antero Midstream Corporation (NYSE:AM) was downgraded from ‘Equal-Weight’ to ‘Underweight’ by Barclays analyst Marc Solecitto on March 2, with a price objective of $10, down from $11. The analyst expected little upside potential in 2022, with the company in maintenance mode and rapid investment returns unlikely until 2024.
During the fourth quarter of 2021, Mitch Cantor sold off his stake in Antero Midstream Corporation (NYSE:AM), which had featured in the fund’s portfolio since the first quarter of 2019. Mitch Cantor had been selling the stock since the third quarter of 2020.
Overall, hedge funds are loading up on Antero Midstream Corporation (NYSE:AM), as 16 of the funds tracked by Insider Monkey held stakes in Antero Midstream Corporation (NYSE:AM) at the end of Q4, up from 14 funds a quarter earlier. Richard Schimel and Lawrence Sapanski’s Cinctive Capital Management is the most significant stakeholder of Antero Midstream Corporation (NYSE:AM) among that group, with 3.13 million shares valued at $30.28 million.
Bonhoeffer Capital Management, an asset management firm, highlighted a few stocks in its Q4 2020 investor letter, and Antero Midstream Corporation (NYSE:AM) was one of them. Here is what the fund said:
“Public LBOs (32% of Portfolio; Quarterly Average Performance +25%)
This includes our broadcast
TV franchises, leasing and roll-on/roll-off (RORO) shipping, and our natural gas pipeline firm. One trend in these levered firms is the increasing spread between bond yields and the firms’ free cash flow yield.
An example is Antero Midstream Corporation (NYSE:AM), whose FCF yield was 15% as of December 31, 2020, with a debt yield of 6% with the bond/equity FCF spread of 9%. This is a large spread given that Antero Midstream Corporation (NYSE:AM) has completed its backbone infrastructure and gathering investment and capital expenditures should be small going forward. With natural gas prices rebounding, Antero Midstream Corporation (NYSE:AM) cash flows become more secured as Antero Midstream Corporation (NYSE:AM) has more cash flow cushion in making payments to Antero Midstream. The recovery in natural gas prices is expected to continue as the economy opens up and low oil prices have shut down Permian oil wells that were generating almost-free associated natural gas. Antero Midstream’s FCF yield of 15% is also higher than similarly secured Antero Midstream Corporation (NYSE:AM) subordinated debt with a yield of 7.8%.”
1. Alliance Resource Partners, L.P. (NASDAQ:ARLP)
Number of Hedge Fund Holders: 5
Percentage Decrease in Stake in Q4: 100%
Alliance Resource Partners, L.P. (NASDAQ:ARLP) is a natural resource firm that produces and sells coal to utilities and industrial customers in the United States. Alliance Resource Partners, L.P. (NASDAQ:ARLP)’s segments include Illinois Basin, Appalachia, Minerals, and Other & Corporate.
An ‘Outperform’ rating was assigned to Alliance Resource Partners, L.P. (NASDAQ:ARLP), along with a $22 price objective by Noble Capital analyst Mark Reichman on March 30. Mountain Lake Investment Management sold all of its 229,500 Alliance Resource Partners, L.P. (NASDAQ:ARLP) shares in the fourth quarter of 2021.
Alliance Resource Partners, L.P. (NASDAQ:ARLP) was in 5 hedge funds’ portfolios at the end of the fourth quarter of 2021, down from 6 in the preceding quarter. Magnolia Capital Fund is Alliance Resource Partners, L.P. (NASDAQ:ARLP)’s largest shareholder, holding shares valued at $62.5 million as of December 31.
For some compelling buying opportunities, be sure to check out 10 Tech Stocks to Buy Now According to Robert Pitts’ Steadfast Capitals and 8 Best Energy Stocks to Buy According to Stuart Zimmer’s Hedge Fund
