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Arch Coal, Fiat Chrysler Shares too Cheap to Fear Buying Now

Back from bankruptcy, a leaner Arch Coal is benefiting from higher coal prices and a low valuation.

Arch Coal (ARCH) - Get Arch Resources, Inc. Class A Report filed for bankruptcy back in January seeking relief from more than $5 billion in total debt. The metallurgical coal producer started trading again earlier this month after emerging from reorganization. George Schultze, founder of Schultze Asset Management, is fired up about the stock, saying a leaner Arch is benefiting from higher coal prices and a low valuation. Staying in the commodities arena, Schultze is long Energy XXI (EXXIQ) bonds. Energy XXI, one of largest E&P players in the Gulf of Mexico, is currently in reorganization proceedings, but will emerge by year-end. Today's bonds create the new company at under 2.5 times its cash flow, which Schultze called a bargain. Schultze is also bullish on Fiat Chrysler (FCAU) - Get Stellantis N.V. Report , even though the automaker's stock has had a rough ride this year, falling 32%. Last week, Fiat Chrysler reached a tentative deal with unionized workers in Canada by agreeing to make more than $301 million in investments in local operations.

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