Greenlight Capital director David Einhorn (Trades, Portfolio) revealed earlier in the week that he had stepped up his role at CNX Resources Corp. (NYSE: CNX) with 18.96%.
The renowned New York-based active investor firm seeks long-term capital value using an approach rooted in emphasizing intrinsic value, investing in companies has the potential to achieve consistent returns and protect capital regardless of market conditions. Einhorn is also known for its short careers, which include Tesla Inc.
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According to GuruFocus Real-Time Picks, a Premium feature, Einhorn acquired 1.2 million shares of the Pittsburgh-based company on Dec. 30, surpassing the parity portfolio by 1.06%. The stock was trading for an average price of $ 10.97 per share on the day of the transaction.
It now has just over 4 million shares, representing 3.55% of the equality portfolio. GuruFocus estimates that Einhorn has lost 35.69% on its investment since its inception in the third quarter of 2014.
David Einhorn ‘s Own History of CNX Resources.
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Operating in the Appalachian Basin, the natural gas producer has a $ 2.98 billion market potential; its shares traded around $ 13.17 Tuesday with a book price ratio of 0.7 and a sell-to-price ratio of 2.24.
The GF Value Line suggests that the stock is currently overvalued based on past performance, future projections and historical multiples.
GF Value Chart for CNX Resources.
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On Oct. 29, CNX reported its third-quarter results, posting adjusted earnings of 4 cents per share on $ 66.1 million in revenue. In a statement, President and CEO Nicholas J. DeIuliis noted that the company continues to “successfully implement its plan” as it has recorded significant free growth in cash flow, reduced total debt and reduced full-burden cash costs.
“We continue to expect to generate a total free cash flow of approximately $ 3.4 billion over our long-term plan 2020-2026, and our focus remains on co-operating. capital allocation decisions to obtain the long-term intrinsic value for each share of the company, “he added.
Overview of CNX revenue and net revenue growth.
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The company will announce its fourth quarter and full year 2020 financial results before the opening bell on January 28th.
GuruFocus assessed the financial strength of CNX Resources 3 out of 10. As a result of the issuance of approximately $ 240.4 million in new long-term debt over the past three years, coverage weak interest of the company. The Altman Z-Score low of 0.38 also warns that CNX could be in danger of going bankrupt if it does not improve its liquidity position.
Money and debt history for CNX.
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The company’s profit went slightly better, getting a score of 5 out of 10. Despite having negative margins and a product that performs less than half of its competitors, CNX Resources is backed by an average Piotroski F-Score of 4, which indicates stable business conditions. However, as a result of recording losses in operating income and per capita income over the past several years, the forecast rate is one out. from five visible stars. GuruFocus data shows that companies with this status return an average of 1.1% per year over a 10-year period.
Of the gurus invested in CNX Resources, Mason Hawkins (Trades, Portfolio) ’Southeastern Asset Management has the largest stake with 15.85% of the outstanding shares. Steven Cohen (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio) and John Hussman (Trades, Portfolio) also have roles.
Package making and execution
Einhorn ‘s $ 1.23 billion balance sheet, which was made up of 36 stocks at the end of the third quarter, is heavily invested in the consumer cycling sector with a weight of 36.44%. Business space occupancy is much lower at 16.80%.
Make Einhorn package by department.
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Other energy reserves it retained on Sept. 30 were: ConsOL LP Target Resources (NYSE: CCR) and Gulfport Energy Corp. (GPORQ).
In 2019, Greenlight outperformed the S&P 500 with a return of 9.3%. The index yielded 31.48%. Although performance data for 2020 has not yet been released, Bloomberg reported in November that the company was down 1.1% for the year after recording five consecutive months.
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