We used a limit order for the lower side of the bid ask spread. It was filled in less than two days. Around that time it was jumping between 2900 and 3000.
Do they report quarterly? Just curious how their current position looks in regards to met coal prices. Can they maintain a 400+/sh dividend going forward?
To that effect, on the valuation side, where does the current valuation sit historically?
My concern is the current share price is unsustainable if we see a normalization of coal pricing. Perhaps not a direct correlation (given mgmt's efforts to diversify revenue streams as you have pointed out), but just wondering what you think about this.
To our knowledge they don't report quarterly. We've only read annual reports/letters.
Whether they can maintain they're 400 dividend over the short term is a good question. They have distributed $255 so far this year...$75, $90, and $90...as coal prices have fallen. At current prices, $400 is not likely sustainable but its hard to say with all the different income streams ebbing and flowing. Our base case is that the dividend decreases slightly until coal prices rise.
I reached out to IR - you are correct, they do not report quarterly.
I too think the dividend looks unsustainable with current coal prices.
In terms of pricing I think the stock is going to track downwards as coal revenues (and subsequently the dividend) drops. Long term I don't know enough about the area to really have a view. Management looks competent for sure, so I think there could be a buying opportunity in the future for an investor with intimate knowledge and belief in the potential of the area.
The company seem to be pretty under the radar. Also great to see that they are repositioning the company for new income streams. Says a lot about the management.
Terrific job SB! This is the first time I hear about that partnership even though I’ve been following coal companies closely for 3 years.
Do you know how many LP units are outstanding? ie what’s the market cap? Bloomberg has almost no info on Beaver.
Thanks for the question, Tian. Yeah, finding info on this one is the challenging part. But we did find that there are 24,878 LP units.
An exceptional write up SB... Thanks for sharing another hard asset capital light hidden gem!
Thanks for the kind words! This company was such a fun find.
Thanks. Very interesting. Do you know what percentage of the stock is owned by management?
Great question and unfortunately one we are still searching for the answer to.
Thanks. Also, would it be out of line to ask what you got filled at on your one share? I’ve never invested in anything so illiquid.
We used a limit order for the lower side of the bid ask spread. It was filled in less than two days. Around that time it was jumping between 2900 and 3000.
Looks like a gem. Huge antique map fan too!
Pouring over atlases has been a favorite of mine.
Hey guys, interesting company! A few questions:
Do they report quarterly? Just curious how their current position looks in regards to met coal prices. Can they maintain a 400+/sh dividend going forward?
To that effect, on the valuation side, where does the current valuation sit historically?
My concern is the current share price is unsustainable if we see a normalization of coal pricing. Perhaps not a direct correlation (given mgmt's efforts to diversify revenue streams as you have pointed out), but just wondering what you think about this.
To our knowledge they don't report quarterly. We've only read annual reports/letters.
Whether they can maintain they're 400 dividend over the short term is a good question. They have distributed $255 so far this year...$75, $90, and $90...as coal prices have fallen. At current prices, $400 is not likely sustainable but its hard to say with all the different income streams ebbing and flowing. Our base case is that the dividend decreases slightly until coal prices rise.
I reached out to IR - you are correct, they do not report quarterly.
I too think the dividend looks unsustainable with current coal prices.
In terms of pricing I think the stock is going to track downwards as coal revenues (and subsequently the dividend) drops. Long term I don't know enough about the area to really have a view. Management looks competent for sure, so I think there could be a buying opportunity in the future for an investor with intimate knowledge and belief in the potential of the area.
Nice work. Thanks!
Great article.
The company seem to be pretty under the radar. Also great to see that they are repositioning the company for new income streams. Says a lot about the management.
We like a lot of what we see here.
Very interesting company. Can I ask what brokerage you use? The two brokerages I use both don’t allow trading of Beaver.
Charles Schwab.