As I said the other day, the following points helped my decision making;
- $0 debt. -$1.2b in cash in the bank at Sep 20th including $500m in trade receivables) -$300m buy back. Enough to satisfy buy back supporters, with enough cash to satisfy dividend hunters.
I'm expecting something around a $0.75c dividend for the next half. Easily supported by cash balance and future cash flow. I'd like to think if we see coal prices stabilise around these prices for a little bit, then we'll see a more "relaxed" PE of about 5-8, as opposed to the current ~3. I'm thinking that certain money managers are concerned that this boom in coal price will be short lived. hence a sustained support level of $300USD/tonne for another 3-6 months will solidify any doubt.
NHC Price at posting:
$5.58 Sentiment: Buy Disclosure: Held
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