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    Douglas Weiss

    Research Analyst at DSW Investment, LLC

    Douglas S. Weiss is the Principal, Managing Member, and Registered Investment Advisor at DSW Investment, LLC, specializing in value investing across multiple asset classes including corporate bonds, small-cap stocks, ADRs, and REITs. He covers companies such as NACCO Industries and has developed a strong track record of identifying undervalued securities, leveraging more than 19 years of experience to deliver consistent results for individual and pension clients. Weiss began his professional career as an equity research analyst at Salomon Brothers and CIBC World Markets, later moving into private wealth management with Foster & Foster, LLC before founding DSW Investment in 2011. He holds the Chartered Financial Analyst (CFA) designation and is registered as an investment advisor, underlining his commitment to professional excellence and regulatory compliance.

    Douglas Weiss's questions to NACCO INDUSTRIES (NC) leadership

    Douglas Weiss's questions to NACCO INDUSTRIES (NC) leadership • Q2 2025

    Question

    Douglas Weiss of DSW Investment, LLC inquired about several key operational and financial topics, including the reasons for lighter volumes in the unconsolidated coal business, the expected timeline for the Mississippi Lignite Mining Company (MLMC) to regain profitability, and the mechanics of its pricing formula. He also asked about the nature of recent operational issues at MLMC's customer, volume declines in the Contract Mining segment, the allocation of back-end weighted CapEx, cash flow generation, the non-cash pension settlement, and the potential impact of Appalachian data center growth on NACCO's gas reserves.

    Answer

    President & CEO J.C. Butler and SVP & Controller Elizabeth Loveman addressed the questions. Mr. Butler attributed lighter coal volumes to minor, single-quarter issues and confirmed MLMC is expected to return to gross profit in 2026, driven by an improving pricing formula and stabilized plant operations. He clarified that recent customer operational issues were minor, unlike a major past event. For the Contract Mining segment, he cited a mix of customer demand softness and temporary mechanical issues, which are now resolved. Mr. Butler emphasized that the majority of CapEx is for growth initiatives, not maintenance, and highlighted the Thacker Pass lithium project as a major long-term success. Ms. Loveman noted that while cash flow is improving, it will still be a use of cash for the year, with steady increases expected in 2026. Mr. Butler confirmed the pension settlement charge is non-cash and that the overfunding can be used for other qualified plan contributions.

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