In this article we will be taking a look at top 5 stock picks of Randall Smith’s Alden Global. To read our detailed analysis, you can go directly to see the Top 10 Stock Picks of Randall Smith’s Alden Global.
5. Peabody Energy Corporation (NYSE:BTU)
Alden Global’s Stake Value: $6.665 million
Number of Hedge Fund Holders: 27
Peabody Energy Corporation (NYSE:BTU) is a Fortune 500 coal company which is headquartered in Missouri. According to Zack’s, Peabody Energy Corporation (NYSE:BTU) is currently a buy as it is expected to fetch higher than market returns. While Peabody Energy Corporation’s (NYSE:BTU) earnings before interest, tax, depreciation and amortization of $327.7 million in Q1 2022 was more than 5 times than that of Q1 2021.
4. TEGNA Inc. (NYSE:TGNA)
Alden Global’s Stake Value: $6.826 million
Number of Hedge Fund Holders: 44
TEGNA Inc. (NYSE:TGNA) is one of two broadcasting companies in the top 10 stock picks of Randall Smith’s Alden Global, whose holding has increased by 46% in the company in the first quarter. TEGNA Inc. (NYSE:TGNA) has recently been in the news for a proposed sale to Standard General which has met with a lot of opposition, especially from unions.
TEGNA Inc. (NYSE:TGNA) was also mentioned by Hourglass Capital in its Q1 2022 investor letter. Here is what it said:
“At the portfolio level, clients fully invested at the start of the year saw an average return of 5.4% in the first quarter after all associated fees. I made three sales during the quarter, all for very different reasons. First, I sold the entirety of our position in TEGNA, Inc., a broadcasting and digital media business, after the company received a leveraged buyout offer by two joint-venture private equity investors, Standard General and Apollo.”
3. Sinclair Broadcast Group, Inc. (NASDAQ:SBGI)
Alden Global’s Stake Value: $6.963 million
Number of Hedge Fund Holders: 17
You may have heard of Sinclair Broadcast Group, Inc. (NASDAQ:SBGI) if you’ve seen the viral video of dozens of news stations regurgitating the exact same message. Recently, acclaimed journalist Chris Daniels agreed to join Sinclair Broadcast Group, Inc. (NASDAQ:SBGI).
On the investment front, Glassy Mountain Advisors Inc. purchased 7,250 shares of Sinclair Broadcast Group, Inc. (NASDAQ:SBGI) in the first quarter of 2022.
2. Algoma Steel Group Inc. (NASDAQ:ASTL)
Alden Global’s Stake Value: $7.346 million
Number of Hedge Fund Holders: 48
The second of two steel companies in the list of top 10 stock picks of Randall Smith’s Alden Global is Algoma Steel Group Inc. (NASDAQ:ASTL), whose products are sold in the United States, Canada and overseas.
Ravensource, in its Q4 2021 investor letter, mentioned Algoma Steel Group Inc. (NASDAQ:ASTL). Here is what is said:
“Algoma is a Canadian steel producer based in Sault Ste. Marie, Ontario. It emerged from insolvency in November 2018 with a clean balance sheet and began its operating turnaround. It remained a private company until October 2021, when it merged with a public SPAC.
Algoma is the classic “orphan security” we’ve successfully profited off in the past: a post- restructuring stock which has yet to find a stable, long-term oriented investor base. Algoma is unquestionably cheap. It generates tremendous cash flow at current steel prices, and likely will earn its entire market cap in less than 18 months — both quickly de-risking us and providing substantial upside. The issue is that despite the public listing Algoma: 1) remains largely owned by its pre-CCAA creditors, who want out; and 2) new equity investors are staying away for now due to its CCAA overhang; out-of-favour industry; and lack of historical public financials.”
1. Arch Resources, Inc. (NYSE:ARCH)
Alden Global’s Stake Value: $7.364 million
Number of Hedge Fund Holders: 24
Arch Resources, Inc. (NYSE:ARCH) is a new entry into the top 10 stock picks of Randall Smith’s Alden Global, having only been added to the portfolio in Q1 2022. Producing coal, Arch Resources, Inc. (NYSE:ARCH) may be a good buy considering how high coal prices have gotten right now. According to Jefferies, Arch Resources, Inc. (NYSE:ARCH) has received a $225 buy target.
See also 15 Best Energy Stocks to Buy Now and 10 Best Cryptocurrency Exchanges in 2020.
