Further to my remarks on the price drop associated with the YAL dividend, the CRN dividend was amazing. SP snapped by within 48hr and the price drop was in line with the unfranked dividend. given the overnight news on the macro and geopolitical front remaining favorable for Australian thermal coal, then i would expect a 35-45c drop today to deal with the loss of cash and franking credits and then a recovery over the next 1-2 weeks if the current conditions remain. so I plan to buy more once i see the 35-45c drop, if it does not then i think some of the other coal stocks are more attractive from the perspective of P/E and diversification (production and production location). It seems the "buy the dip" is happening for coal stocks but the dip is getting faster recoveries which is understandable which the mountain of cash flow. one final point i would make on auzzie coal companies, historically when coal went bullish so did AUD whereas this time AUD remains at long term historical levels, that translates to good AUD value creation.
NHC Price at posting:
$3.73 Sentiment: Buy Disclosure: Held
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