CNX Resources Corp $ 10.7 -0.46 (-4.08%)
CNX News and Headlines - CNX Resources Corp
David Einhorn (Trades, Portfolio), board chairman of Greenlight Capital Re Ltd. (GLRE), disclosed last week that his fund's top five trades in the second quarter included new positions in VanEck Vectors Gold Miners (GDX), Atlas Air Worldwide Holdings Inc. (AAWW) and Teck Resources Ltd. (TECK), and sells in Altice USA Inc. (ATUS) and CNX Resources Corp. (CNX).
Managing a portfolio of 23 stocks, Einhorn seeks long-term capital appreciation through an investment approach emphasizing intrinsic value. He is a noted activist investor, taking positions in companies and pushing for management changes.
The Federal Reserve has poured unprecedented levels of stimulus into the U.S. economy in an attempt to ease the effects of the pandemic, and most experts agree that inflation is just around the corner. David Einhorn (Trades, Portfolio) has positioned his Greenlight Capital to benefit from inflation when it arrives.
Preparing for inflation
In his second-quarter letter to investors, which was reviewed by ValueWalk, Einhorn said an inflation bias had already been embedded in the portfolio prior to the quarter. The fund's macro book has held gold for a long time. He adjusted the
When two highly regarded gurus paint contrasting pictures about the future of the global economy and stock market performance, investors often find it difficult to select the best course of action. The stance on hoarding cash by Ray Dalio (Trades, Portfolio) and Warren Buffett (Trades, Portfolio) during the early days of this year is a classic example of such a situation. As the U.S. economy attempts to recover from the painful lows seen during the first half of the year, two legendary investors, David Einhorn (
CNX Resources (CNX) (63%, 3.67%), the Appalachian natural gas producer, was the top contributor in the quarter. The company reported strong free-cash flow and earnings before interest rate, tax, depreciation and amortization (EBITDA) growth in the first quarter. CNX has demonstrated a path to reach $500-$730 million annual pretax cash earnings over the next several years, assuming modest $2.45-$3.00/mcf gas prices. If the commodity price continues to disappoint going forward, CNX maintains the industry’s best hedging book, as well as one of its lowest leverage ratios. CNX bonds trade close to par, while inferior exploration and production peers face
Longleaf Partners Fund added 18.08% in the second quarter, while the S&P 500 Index rose 20.54%. Most companies produced positive results in the quarter, as stocks broadly rebounded post the COVID-19 lows in March and April. However, not owning the market’s top contributing Information Technology and holding an average 11% cash allocation took a combined -4.3% toll on relative returns in the quarter. While our investments performed nicely from the lows, this was not significant enough to offset the declines in the first quarter. We are confident in the quality of our businesses and in our aligned management teams’ ability
The firm, led by Hawkins since 1975, takes a value-focused approach to investing. It seeks to achieve superior long-term performance by acquiring equity securities in understandable businesses with strong balance sheets, run by capable management and are trading at less than intrinsic value.
According to Real-Time Picks, a Premium GuruFocus feature, the firm sold 11.03 million shares of the company on June 10. At the time of the sale, the stock was trading at an average price
The Dow Jones Industrial Average closed at 24,133.78 on Monday with a gain of 358.51 points or 1.51%. The S&P 500 closed at 2,878.48 for a gain of 41.74 points or 1.47%. The Nasdaq Composite closed at 8,730.16 for a gain of 95.64 points or 1.11%. The VIX Volatility Index was lower at 33.07 for a loss of 2.86 points or 7.96%.
Monday’s market movers
U.S. indexes started the week higher Monday. In the S&P 500, financials and real estate led gains, with broadening plans for state reopenings. States that have already enacted reopenings include Alaska, Oklahoma, California, Florida,
According to the GuruFocus All-in-One Screener, a Premium feature, the following guru-owned stocks have outperformed the S&P 500 Index over the past 12 months as of April 27.
Euronav NV (EURN) has a market cap of $2.35 billion. It has outperformed the S&P 500 by 22.67% over the past year.
Shares are trading with a price-book ratio of 1.04. According to the DCF calculator, the stock is overpriced by 103% at $11.3. As of Monday, the share price was 56.73% above the 52-week low and 14.46% below the 52-week high.
The company, which operates a fleet of
CNX Resources (CNX) (-23%, -1.14%, 22%, 1.06%), the Appalachian natural gas E&P and midstream company, was among the top five contributors in the fourth quarter but was the largest detractor from the Fund’s annual performance. With gas prices declining over 25% and the industry’s capital market access disappearing, 2019 was one of the worst relative and absolute years in the history of the US natural gas industry. Despite the painful losses this year, CNX has outperformed its peers since separating from its coal business two years ago. More importantly, CNX has a manageable balance sheet at a time when
The Longleaf Partners Fund returned 9.05% in the fourth quarter, in line with the S&P 500 Index’s 9.07% in the period. The Fund returned 14.81% for the year, ahead of our absolute return goal of inflation+10% but far short of the Index’s 31.49% return for the year. The S&P 500 soared to new heights, as we saw a continuation of the headwinds we discussed in last quarter’s letter, last year’s annual letter and multiple other forums over the last decade: the continued dominance of Growth stocks over Value stocks (which eased in the last four months of the year), US
Mason Hawkins (Trades, Portfolio), chairman and CEO of Southeastern Asset Management, disclosed this week that his firm trimmed its position in Summit Materials Inc. (SUM). This and other recent Guru trades can be found using GuruFocus Real-Time Picks, a Premium feature.
Southeastern seeks long-term capital appreciation by acquiring equity securities in understandable businesses with strong balance sheets, run by capable management and trading for less than intrinsic value.
Transaction details and company background
Southeastern disclosed a holding of 5,117,610 shares, down 60.08% from the holding of 12,820,469 shares at the
Energy stocks, and to a lesser extent bank stocks, have been the market’s whipping boys in 2019. Now they are being punished anew, as investors sell shares to establish tax losses.
In the fall frenzy of tax-loss selling, certain stocks are often pushed below their intrinsic value, and that is happening now, I believe.
Come the new year, I expect stocks such as Concho Resources Inc., Green Dot Corp. and Cooper-Standard Holdings Inc. to benefit from the “January bounce” that often buoys up the previous year’s losers.
Timing is tricky. Sometimes the January bounce starts in December. Some years it
According to the GuruFocus All-In-One Screener, the following energy stocks are popular among gurus as of Sept. 5.
CNX Resources Corp. (CNX) is held by six gurus
The company is mainly focused on the exploration and production of natural gas properties. It has a market cap of $1.51 billion. Its revenue of $1.76 billion has fallen at a rate of 17.50% over a 10-year period.
The stock is trading with a price-earnings ratio of 5.40. As of Thursday, the share price of $8.30 was 47% below the 52-week high and 33%
CNX Resources (NYSE:CNX) successfully separated its coal business from the natural gas company and has sold gas assets at good prices. CEO Nick Deluliis and the board, which includes three members suggested by Southeastern, can continue to sell some or all the company’s gas reserves, as well as monetize its pipeline assets. Insider buying has been significant.
From Longleaf Partners' second-quarter 2019 shareholder commentary.
Southeastern Asset Management, the investment firm founded by Mason Hawkins (Trades, Portfolio) in 1975, disclosed on Monday it expanded its holdings of Eastman Kodak Co. (KODK) and CNX Resources Corp. (CNX).
To achieve long-term capital growth, the Memphis, Tennessee-based firm, which manages the Longleaf Partners Funds, invests in a concentrated number of undervalued companies that have strong balance sheets and good management teams.
According to GuruFocus Real-Time Picks, a Premium feature, the firm boosted its Eastman Kodak stake by 866.78% on June 10, buying 42.9 million shares. It now holds 47.95 million shares
Einhorn, the founder of hedge fund Greenlight Capital, runs a concentrated portfolio that listed only 18 positions at the end of the first quarter, valued around $1.41 billion in aggregate. His largest sector weightings were consumer cyclical at 31% of holdings, real estate at 14.99% and industrials at 14.29%. His largest position, General Motors Co. (GM), dominates the equity portfolio at 24.03% after he reduced it by 23.66% in
Even though Einhorn's performance has been really bad the last several years, I remain a devoted follower and love to read his letters to see what he thinks about the firm's positions. Greenlight posted an 11% return for the quarter, lagging the S&P by 2.6%. That's not great, but the firm is 112% long and 70% short, meaning its net exposure is only about half that of the S&P 500.
AerCap Holdings (AER), Brighthouse Financial (BHF), Deutsche Pfandbriefbank (PBB), General Motors (GM) and
According to GuruFocus’ list of 52-week lows, these guru stocks have reached their 52-week lows.
Gap reached the 52-week low of $25.00
The price of Gap Inc. (GPS) shares has declined to close to the 52-week low of $25.00, which is 30.1% off the 52-week high of $34.71. The company has a market cap of $9.54 billion.
Its shares traded with a price-earnings ratio of 10.51 and a price-sales ratio of 0.58 as of Feb. 1. The trailing 12-month dividend yield is 3.88%. The forward dividend yield is 3.88%. The company had an annual average earnings growth of 6.80% over
Many active managers applying a value philosophy run concentrated portfolios that focus on their best ideas. Their tendency to concentrate may be influenced by the model of Warren Buffett (Trades, Portfolio), who said in 2008 that in his early days, he would have 80% of his portfolio in five positions, with 25% in the largest. In 1998, he advocated for having six positions with half in the best idea.
“Very few people have gotten rich on their seventh best idea,” Buffett has said, “but a lot of people have gotten rich with their best idea.”
CNX (NYSE:CNX) (-22%, -1.35%, -20%, -1.30%), the Appalachian natural gas company, detracted for the year. The stock declined after reporting an 8.5% increase in capital expenditure guidance during the second quarter. Additionally, nearly all energy stocks had a sharp selloff following the fourth quarter’s commodity price volatility. CEO Nick DeIuliis took advantage of the dislocation by repurchasing over 16% of CNX’s outstanding shares in the 12 months ended in October. Our appraisal increased with the company’s growth in cash flow. In June, CNX sold its Ohio Utica acreage for a good price. The company has other non-core