Well, I sold out of NHC a few weeks ago (15th Feb I think?) at $5.70 and bought YAL at $5.70 which as proved to be a very lucrative move (I also like the exposure to Met Coal, I think on your advice?). I haven't done any calculations on the NHC numbers, but will probably look at it when they report. I assume their numbers will be fine, but not spectacular due to the capital note purchases and perhaps a lower dividend? a few months ago whilst coal was still high, I was expecting 60c+FF? but now I dont see it being any more than what WHC declared. Would also like to see what prices they've hedged at. If I recall correctly, it was $405USD till June this year? but not sure on how much coal that was with respect to.
I think we're in a bit of a weird zone at the moment. Coal stocks have come off their highs, but now trading at relatively "fair" valuations. I think with rising interest rates, there will be a move to value stocks (making profits, low to no debt, a tangible moat) etc. I am waiting to see what the coal price does at the end of this month as well with SK and Japan fully banning Russian imports. Warmer conditions in the Northern hemispheres also requires more cooling and ergo more electricity.
NHC Price at posting:
$5.85 Sentiment: Buy Disclosure: Held
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