Why a Value Fund Has a $29 Million Bet on Core Natural Resources Stock

Group 1 - Summit Street Capital Management increased its stake in Core Natural Resources (CNR) by 81,170 shares during the third quarter, adding approximately $10.4 million in position value, bringing the total stake to 342,155 shares valued at $28.6 million as of September 30 [1][2] - The CNR position now represents 3.9% of Summit Street's 13F assets, making it the fund's fourth-largest holding [3] - As of the latest report, CNR shares were priced at $82.54, reflecting a 29% decline over the past year, underperforming the S&P 500, which increased by 13% during the same period [3] Group 2 - Core Natural Resources is a leading U.S.-based coal producer with vertically integrated mining and export operations, serving a diverse customer base in the energy and industrial sectors [6][9] - The company reported revenue of $3.7 billion and a net income loss of $43.4 million for the trailing twelve months [4] - CNR's latest quarter showed revenue of $1 billion, net income of $31.6 million, and adjusted EBITDA of $141.2 million, supported by 13 million tons of Powder River Basin shipments [11] Group 3 - CNR has returned approximately 100% of free cash flow to shareholders through repurchases and dividends year-to-date, ending the quarter with $995 million in liquidity [11] - The company's operational resilience is highlighted by its ability to manage disruptions without eroding cash flow, which is a positive indicator for long-term investors [10]