Suresh,
The coal space as a whole is struggling in 2024 with CRN -16%, WHC -4.8% and NHC -3.1% as of midday Friday – these numbers illustrate one of the reasons we prefer WHC over CRN, stay with the strength. You are correct that the market currently likes CRN with 1 sell, 1 hold, 6 buys, and 2 strong buys on the stock but “the tape” doesn’t agree with the analysts.
- We remain bullish coal over the coming years, particularly met coal used in steel making, which is what CRN produce and this is what will dominate WHC’s production post-acquisition.
We think scale is very important, and for that reason, we prefer WHC, but don’t have any issues with CRN.