5 Best Stocks to Buy According to Charles Paquelet’s Skylands Capital

3. Arch Resources, Inc. (NYSE:ARCH)

Skylands Capital’s Stake Value: $45,226,000

Percentage of Skylands Capital’s 13F Portfolio: 6.63%    

Number of Hedge Fund Holders(Q1): 45

Coal mining company Arch Resources, Inc. (NYSE:ARCH) has seen a multifold increase in its stock price since late 2020 on the back of increasing demand for coal globally. Though the stock has cooled down quite a bit from the all-time high of $183.53 it made recently, it is still trading up by over 42% year-to-date.

Arch Resources, Inc. (NYSE:ARCH) has announced two massive special dividends of $7.86 and $5.75 per share for its shareholders since the beginning of this year. These special dividends are on top of the current $0.25 per share dividend the company pays every quarter. However, several analysts think that Arch Resources, Inc.’s (NYSE:ARCH) stock is overvalued at the moment solely due to the company’s recent spectacular financial performance. According to them, the stock can fall significantly once the demand for coal, which is now considered a fuel of last resort,  starts to cool off.