AMR Alpha Metallurgical Resources, Inc. : Bullish and Bearish Analyst Opinions

Carol Massar reported coal stocks rallying sharply, with specific companies like Peabody Energy up 8% and Warrior Met Coal up 10%, due to tightened LNG supplies from the war in Iran and Qatar's capacity outage lasting 3-5 years. Reduced LNG supply increases demand for coal as an alternative energy source, which should boost coal companies' revenues and stock prices. Long on coal companies as they are poised to benefit from sustained high demand over the medium term. Rapid resolution of the conflict or faster-than-expected recovery of LNG infrastructure.

The coal sector is seeing increased buying interest.

"Taiwan has about 10 days left of natural gas stored... How do you bridge the gap? You're going to burn a ton of coal. And so if you're a coal producer in Indonesia, South Africa, Australia, all of a sudden you're getting tons of orders from Europe, from Japan, from Korea, from Taiwan." If Middle Eastern oil and Qatari natural gas shipments are disrupted by conflict in the Strait of Hormuz, energy-starved Asian and European allies will be forced to aggressively bid up the price of coal to keep their power grids online. Global coal exporters will capture massive windfall profits. LONG. Coal equities act as a high-beta call option on global natural gas and oil supply chain disruptions. The Strait of Hormuz remains fully open, and a mild winter globally crushes demand for thermal coal.