CHL will do particularly well as the volumes of coal exported rises over coming years, regardless of how far the coal prices retreat. this is one of the main reasons i have selected this investment ahead of any of the coal mining plays which experience greater volatility on the back of coal price fluctuations. Also the coal price boom has peaked, but the volume boom is only commencing. Mining services stocks such as worleys, transfield, campbell brothers, united group etc will do well over the LT too, but these are already priced up on fairly high earnings multiples.
CHL has the whole package, brilliant market positioning, strong inherent growth (without having to secure new contracts), and a price tag which is currently still very cheap at a P/E ratio of 10.5. I also believe CHL will reward shareholders strongly once they recommence dividends. The current strong cash generation is an indication this is not far away now.
CHL Price at posting:
0.0¢ Sentiment: None Disclosure: Held
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