Alliance Resource Partners, L.P. (NASDAQ:ARLP)

CAPS Rating: 2 out of 5

The Company is a producer and marketer of coal to major United States utilities and industrial users.

ARLP News and Commentary

Caps

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All Players

710 Outperform
33 Underperform
 

All-Star Players

101 Outperform
10 Underperform
 

Wall Street

6 Outperform
1 Underperform
 

Top ARLP Bull/Bear Pitches

The best Bull and Bear pitches based on recency and number of recommendations.

jed71 (99.74)
Submitted January 24, 2018

TMFFlyGal is absolutely correct. This isn’t sexy – in fact, from some angles, it’s downright ugly. I consider this the Rumpelstiltskin of stocks. Before you jump to conclusions, though, please consider that Rumpelstiltskin could spin gold from straw.… More

btukwh (33.24)
Submitted December 24, 2008

It will be interesting to see what happens to coal pricing when and if carbon and mercury become traded. Sharp reductions in NOx also will be harder for coal plants than NGCC plants. Nuclear anyone?I think coal pricing may drop a lot quicker than the… More

ARLP VS S&P 500 (SPY)

Recent Community Commentary

Read the most recent pitches from players about ARLP.

Recs

0
Member Avatar pchop12316 (92.39) Submitted: 2/20/2018 11:17:26 AM : Outperform Start Price: $18.18 ARLP Score: -0.72

presidential support

Recs

1
Member Avatar jed71 (99.74) Submitted: 1/24/2018 9:58:57 AM : Outperform Start Price: $20.53 ARLP Score: -8.20

TMFFlyGal is absolutely correct. This isn’t sexy – in fact, from some angles, it’s downright ugly. I consider this the Rumpelstiltskin of stocks. Before you jump to conclusions, though, please consider that Rumpelstiltskin could spin gold from straw. Not a perfect analogy but this company isn’t as bad as it’s being treated by investors.

The dividend is at approx. 9.8% and has been climbing the past few quarters. Their cash flow is also amazing, producing about $456MM in operating cash over the past 9 months. Compare that to paying cash dividends of approx. $173MM and one can see they are able to afford the dividends. The payout ratio comes in at a very strong 53% - quite impressive for a company paying an almost 10% dividend. They also have an ROE of over 25% and are producing EBITDA of over 35%. The balance sheet is quite strong, and seems to be incrementally improving each quarter. Their revenue has been falling, but I’m not sure that will last in the weak dollar environment we find ourselves in.

This firm is set up through a somewhat complex management structure. If I understand the 10-Q correctly, the firm is managed by MGP and majority owned by AHGP. To wit:

“We are managed by MGP, a Delaware limited liability company and the sole general partner of ARLP. MGP holds a non-economic general partner interest in ARLP, a 1.0001% managing general partner interest in the Intermediate Partnership and a 0.001% managing member interest in Alliance Coal. AHGP is a Delaware limited partnership that was formed to become the owner and controlling member of MGP. AHGP completed its initial public offering on May 15, 2006. AHGP owns directly and indirectly 87,188,338 common units of ARLP’s 130,704,217 outstanding common units. AHGP indirectly owns 100% of the members' interest of MGP. ARLP and its consolidated subsidiaries represent virtually all the net assets and operations of AHGP. See discussions below regarding MGP’s and AHGP’s change of ownership in ARLP effective with the Exchange Transaction on July 28, 2017.”

AHGP looks to be majority owned by two people (through the share structure). So, the ownership and management of this coal company is strongly aligned with the interests of the public shareholders. The coal industry has been going through some pretty rough times over the past 8-10 years. People do not like it as an energy source given its carbon-based, and many consider it to be “dirty”. While I won’t go into the politics of this, I don’t think coal is completely dead. It’s just way too efficient of an energy source compared to the other carbon- and non-carbon based options. In addition, coal has other uses in the steel and manufacturing industries. Finally, China has been stepping in and buying large amount of coal over the past several years. This has begun to put a little upward pressure on the per ton price of coal. I personally don’t think this industry is going to disappear any time soon. I have bought a small amount because of the yield and stability of the dividend. Please do your own research if you're making a real life bet, and don't rely on my few comments.

Recs

0
Member Avatar TMFReubenGBrewer (24.02) Submitted: 10/11/2017 8:58:35 AM : Outperform Start Price: $18.51 ARLP Score: -9.69

Long term yield play. This is probably the best run coal company in the country. Although coal is out of favor it isn't dead and Alliance is positioned to keep doing well. Investors get to collect a huge yield along the way, though most of the return will be found in that yield.

Leaderboard

Find the members with the highest scoring picks in ARLP.

Score Leader

Katharos1

Katharos1 (63.97) Score: +303.73

The Score Leader is the player with the highest score across all their picks in ARLP.

Top
Pick
Member Name Member
Rating
Start
Date
Call Time
Frame
Start
Price
Stock
Gain
Index
Gain
Score Commentary
wcwhiner 29.30 10/5/2011 Underperform NS $19.28 -7.39% +138.20% +145.60 0 Comment
TI123 81.58 4/12/2011 Underperform 5Y $22.15 -18.50% +107.05% +125.55 0 Comment
craigred6 < 20 4/25/2011 Underperform 1Y $21.69 -16.77% +103.59% +120.36 0 Comment
busy77 < 20 2/17/2009 Underperform 5Y $8.02 +125.20% +245.21% +120.01 0 Comment
bobster13 < 20 8/9/2010 Underperform 5Y $14.77 +22.21% +141.15% +118.94 0 Comment
rock118xxx < 20 6/11/2012 Underperform 5Y $18.47 -3.36% +101.27% +104.63 0 Comment
number1inmath < 20 3/30/2012 Underperform NS $18.21 -1.98% +91.63% +93.62 1 Comment
SPA1234 25.93 9/3/2013 Underperform 1Y $25.48 -29.93% +63.44% +93.37 0 Comment
Gunnarsdaddy 85.93 10/23/2013 Underperform 1Y $25.60 -30.28% +54.73% +85.01 1 Comment
pregu 97.70 10/27/2014 Underperform 5Y $31.90 -44.04% +37.97% +82.01 1 Comment

Wall Street

See what the Wall Street professionals think, according to their public statements and filings.

Player Name Player
Rating
Start
Date
Call Time
Frame
Start
Price
Stock
Gain
S&P
Gain
Score End Date Commentary
TrackDahlmanRose < 20 5/21/2012 Outperform NS $17.45 +2.29% +107.48% -105.19 0 Comment
TrackPoisedTo < 20 2/16/2012 Outperform 5Y $22.19 -19.54% +100.68% -120.22 0 Comment
TrackRSHighYield < 20 1/31/2012 Outperform 5Y $23.59 -24.33% +106.48% -130.81 0 Comment
TrackUltraLong < 20 11/3/2011 Outperform NS $22.22 -19.66% +115.57% -135.24 1 Comment
TrackDeutscheSec 88.16 1/11/2011 Outperform NS $20.12 -10.29% +113.69% -123.98 0 Comment
TrackHilliard 91.77 4/27/2010 Outperform NS $13.92 +29.69% +125.36% -95.68 0 Comment
TrackJimCramer 85.44 1/25/2010 Underperform 3W $11.07 +63.10% +147.70% +84.60 0 Comment
TrackRBCCapMkts 87.00 10/30/2009 Outperform NS $17.57 +82.59% +16.73% +65.86 12/6/2010 @ $32.08 0 Comment
TrackCitigroup 92.73 3/6/2009 Outperform NS $12.70 +34.80% +27.82% +6.98 4/30/2009 @ $17.12 0 Comment
TrackJimCramer 85.44 6/27/2008 Outperform 3W $24.70 -16.36% -14.32% -2.03 1/26/2010 @ $20.66 0 Comment
TrackStifel 92.01 3/7/2008 Outperform NS $18.38 -18.03% -36.80% +18.77 3/27/2009 @ $15.07 0 Comment
TrackJohnKeeley < 20 9/30/2007 Outperform NS $16.05 +7.56% -13.94% +21.50 3/31/2008 @ $17.26 1 Comment
TrackStifel 92.01 4/9/2007 Outperform NS $19.49 +0.07% +1.76% -1.70 8/2/2007 @ $19.50 0 Comment
TrackJimCramer 85.44 6/21/2006 Underperform 3W $16.17 +71.58% +1.85% -69.72 6/27/2008 @ $27.75 0 Comment

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