Group 1 - The stock market performance in the fourth quarter has shown significant movement, particularly in small-cap stocks, which have finally started to yield positive results after years of recommendations from strategists [1] - Ramaco Resources Cl A has demonstrated improving price performance, earning an upgrade to its IBD Relative Strength Rating, indicating a positive trend in its market position [2][4] - The company has achieved a Relative Strength Rating of over 90, joining an elite group of stocks, which reflects its strong market leadership and technical strength [4] Group 2 - The coal industry, represented by stocks like Ramaco Resources, has faced challenges with many stocks falling below key levels, despite some showing renewed technical strength [4]

Core Viewpoint - The Zacks Coal industry is experiencing significant challenges due to declining coal usage in U.S. thermal power plants, with projections indicating a marginal improvement in demand by 2025 followed by a drop in 2026 due to ongoing energy transitions and utility operators phasing out coal assets [1][3]. Industry Overview - The Zacks Coal industry includes companies involved in coal exploration and mining, with the U.S. holding an estimated 252 billion short tons of recoverable coal reserves, 58% of which is underground mineable [3]. - Five U.S. states contribute to approximately 70% of annual coal production and 60% of surface mine extraction [3]. - The industry faces long-term challenges as renewable energy adoption accelerates and coal-fired power plants are gradually retired [3]. Trends Impacting the Industry - Coal export volumes are expected to decline in 2025 and continue into 2026 due to a global supply surplus and falling prices, particularly affecting metallurgical coal exports [2][4]. - The U.S. coal production is projected to be 531 million short tons in 2025, an increase from 512 million short tons in 2024, but expected to drop to 494 million short tons in 2026 [5]. - Coal's share in U.S. electricity generation is anticipated to decrease from 17% in 2025 to 16% in 2026, driven by rising environmental concerns and the transition to cleaner energy sources [5]. Industry Performance and Valuation - The Zacks Coal industry ranks 230, placing it in the bottom 5% of 243 Zacks industries, indicating a lackluster performance outlook [6][8]. - The coal industry has outperformed the Zacks Oil and Gas sector and the S&P 500 composite over the past year, with a gain of 22.7% compared to a 4.2% decline in the Oil-Energy sector and a 13.9% gain in the S&P 500 [9]. - The industry currently trades at a trailing 12-month EV/EBITDA of 8.84X, significantly lower than the Zacks S&P 500 composite's 18.12X [12]. Notable Companies - **Alliance Resource Partners (ARLP)**: Based in Tulsa, OK, ARLP produces coal primarily for utilities and industrial users, with projected sales tonnage in 2025 between 32.75-34 million short tons. The current distribution yield is 9.58% [16][17]. - **SunCoke Energy (SXC)**: Located in Lisle, IL, SXC focuses on metallurgical coal essential for steel production. The company benefits from its acquisition of Phoenix Global, which is expected to enhance earnings and cash flow stability. The current dividend yield is 5.82% [21][22].

We will come to regret turning the government into a "white-glove" concierge service for oil, gas and coal, @markgongloff says (via @opinion) https://t.co/5JUYozJ1OG ...

Core Insights - Chinese coal imports surged to 46 million tons in September, marking the highest level in nine months and for 2025, driven by falling domestic output and rising prices [1][2][4] Group 1: Import Trends - September coal imports were lower than the same month last year, when international coal prices were significantly lower [2] - After a decline in coal imports earlier this year, with July seeing a 23% drop year-on-year, imports strengthened in August and remained high in September [3][5] Group 2: Domestic Market Dynamics - Domestic coal prices have increased in the second half of the year, making imported coal more competitive due to a widening price gap [4] - A drop in domestic production and increased demand for power generation during heat waves in August contributed to the rise in coal imports [4] Group 3: Government Policies - The Chinese government has implemented measures to curb oversupply and support coal prices, which has led to a decline in domestic coal production [2][5] - Authorities have encouraged coal-fired power plants to boost stockpiles with domestic supply to increase local demand and prices [2]

Group 1: Stock Performance - The share price of Core Natural Resources, Inc. (NYSE:CNR) surged by 12.45% between October 3 and October 10, 2025, making it one of the top-performing energy stocks for the week [1] - Jefferies analyst Christopher LaFemina upgraded CNR from 'Hold' to 'Buy' and raised the price target from $90 to $125, citing a 15% increase in America's thermal coal demand over the past year [3] - UBS analysts also increased their price target for CNR from $89 to $105.5 while maintaining a 'Buy' rating [4] Group 2: Industry Context - Core Natural Resources is recognized as a leading producer and exporter of high-quality, low-cost coals, including metallurgical and high calorific value thermal coals [2] - The White House announced plans to open 13 million acres of federal lands for coal mining and allocated $625 million to expand coal power generation, alongside easing regulations on pollution to extend coal power plants' lifetimes [4] Group 3: Leadership Changes - Core Natural Resources appointed Jimmy Brock, the board chair, as the new Chief Executive Officer [5]

Company Overview - Alliance Resource Partners, L.P. is primarily engaged in the production and marketing of coal, generating revenue from these activities [1]. Industry Context - The coal industry has undergone significant changes over the last two decades, impacting the dynamics of energy production and market demand [1].

Company Overview - Alliance Resource Partners, L.P. is primarily engaged in the production and marketing of coal, generating revenue from these activities [1]. Industry Context - The coal industry has undergone significant changes over the last two decades, impacting the dynamics of energy production and market demand [1].

Core Viewpoint - The natural resources sector has experienced a strong rally due to rising commodity prices, benefiting many companies, but not all are performing well [1] Company Summary - Core Natural Resources (CNR) is currently lagging behind its peers despite the overall commodity rally, struggling with execution, inconsistent production volumes, and declining profitability [2] - CNR's Zacks Rank is 5 (Strong Sell) due to negative earnings revisions from analysts, with the current year consensus estimate dropping from $5.37 to a loss of $1.10, and next year's estimates decreasing from $12.24 to $10.39 [3] - The company's profitability issues stem from higher input costs, operational inefficiencies, and tougher contract terms, alongside a rising debt load due to capital spending, resulting in a multi-year high debt-to-equity ratio [4] - The combination of shrinking margins and increasing debt indicates that CNR is poorly positioned in the current commodity cycle, suggesting investors should remain cautious until earnings revisions improve [5] Industry Summary - The coal industry ranks in the bottom 14% of the Zacks Industry Rank, with no stocks currently rated favorably, only two stocks holding a Zacks Rank of 3 (Hold) [6]

Economic Overview - Russia's nominal GDP stands at $2.2 trillion, comparable to its level in 2013, prior to the annexation of Crimea [1] - The economy contracted by 1.4% in 2022 but is projected to grow by 4.1% in 2023 and 4.3% in 2024, with a forecasted slowdown to 1.0% growth this year [8] Sector Performance - Non-military sectors of the economy have contracted by 5.4% since the beginning of the year, indicating significant economic strain [2] - The construction industry is facing a downturn, with cement consumption expected to fall below 60 million tonnes, a level not seen since the COVID pandemic [5] Labor Market Adjustments - Major companies, including Cemros, Russian Railways, and GAZ, have implemented a four-day workweek to manage labor costs amid economic challenges [6][12] - The unemployment rate has reached a record low of 2.1%, despite the economic difficulties [8] Government Intervention - The Russian government has been compelled to provide support across various sectors, including coal and metals, to prevent mass layoffs [17] - In previous economic downturns, state support was extended to major employers to mitigate discontent in industrial towns [16] Industry-Specific Challenges - The coal sector is particularly affected, with reports of 19,000 layoffs in the first half of 2025 and warnings of potential bankruptcies among coal enterprises [18][19] - The steel industry is also under pressure, with discussions of a moratorium on bankruptcies and indications of workforce reductions without mass layoffs [21][22]

Group 1 - Black Bear Value Fund reported a return of -7.1% in September, -1.0% in the quarter, and -12.7% year-to-date, contrasting with the S&P 500's returns of +3.6% in September, +8.1% in the quarter, and +14.8% year-to-date [1] - The fund highlighted Warrior Met Coal, Inc. (NYSE:HCC) as a significant investment, noting its one-month return of 10.58% and a 52-week gain of 6.64% [2] - Warrior Met Coal, Inc. has a market capitalization of $3.411 billion, with its stock closing at $64.89 per share on October 8, 2025 [2] Group 2 - Warrior Met Coal, Inc. is recognized as a leading producer of metallurgical coal, primarily used in steel production, and is currently investing its free cash flow in a capital project expected to conclude this year [3] - The investment potential of Warrior Met Coal, Inc. is acknowledged, but the company is not among the 30 most popular stocks among hedge funds, with 30 hedge fund portfolios holding its stock at the end of Q2 2025, down from 32 in the previous quarter [4] - The analysis suggests that certain AI stocks may offer greater upside potential and less downside risk compared to Warrior Met Coal, Inc. [4]