Posted on April 28, 2022 by Scott Shuda
April 28: A few thoughts to start the day. . . Coal is hot. Coal play Arch Resources (ARCH) is a great success story on Breakout Investors. Led by Leighton Peters and Florian Buschek ARCH has been one of the best performing stocks on the planet. Over the last year it has gone from $44 to close at $171 yesterday. ARCH posted strong Q1 results and the company expects improved transport to drive profitability. There is long term demand for coal worldwide. ARCH is using free cash flow to reduce share count and outlined multiple bullish factors going forward.
Yesterday we featured gas play Antero Resources (AR) which released Q1 results after the close Wednesday. AR beat Street estimates, paid down debt and is repurchasing $100M of equity. Free cash flow guidance increased substantially. . . In other gas news, Putin has cut off gas to Poland and Bulgaria and may do the same to other “unfriendly nations.” The European Commission President called it “blackmail.” Check out the Energy Room for more ideas like Antero and ARCH.
It was Twofer Wednesday (say what?) as ad-tech Perion (PERI) had not one but two bullish Seeking Alpha articles published about it. It also checked in with Q1 earnings this morning. Q1 Non-GAAP EPS of $0.44 beat by $0.11, revenue of $125.3M (+39.5% Y/Y) beat by $3.28M. PERI raised FY2022 revenue outlook to $620M-$640M vs. prior outlook of $610M. PERI is up in pre-market. . . Our favorite small airliner and travel play Volaris (VLRS) announced Q1 results. Q1 GAAP EPADS of $0.42. and revenue of $567M (+80.0% Y/Y). Total revenue per available seat mile increased 18%. Domestic and international passengers increased 58% and 95%, respectively. . . There’s a new ETF and it’s focused on drones and autonomous vehicles, symbol UAV. . . “All I ask is the chance to prove that money can’t make me happy.” – SPIKE MILLIGAN. . . Good luck to all.
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