Jim Cramer’s Latest Lightning Round: 7 Stocks in Focus

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

Number of Hedge Fund Holders: 39

A caller asked Cramer’s take on the coal industry and on Core Natural Resources, Inc. (NYSE:CNR). In response, Cramer said:

“You know… I was betting that coal could make a comeback only just because… that was in line with the president. But the prices for coal are so bad… That’s just another… you know, it’s a Pennsylvania coal company but there’s, there’s just not much to these stocks. I wish they could find a bottom, but they can’t. But I’m glad that you called about it.”

Core Natural Resources (NYSE:CNR) specializes in the production and sale of bituminous coal, mainly for use in power generation, industrial applications, and metallurgy. Additionally, the company provides coal export terminal services at the Port of Baltimore.

Black Bear Value Partners stated the following regarding Core Natural Resources, Inc. (NYSE:CNR) in its Q4 2024 investor letter:

“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)