IBES Report in - WHC is a Buy, page-150

Moneymaker1979,

Agree sounds really tasty, however I sense sarcasim!

Here is the theory, coal prices are in the toilet, the indexes people look at are not the real numbers that coal producers are letting coal go for today. For example I believe Newcastle producers are selling to Pakistan at US$47 per tonne or less, just to move the tonnes. Coal contracts are backwards looking so the prices of 2-3 months ago is the price a producer receives today on overage. Roll that forward and the debt burden becomes real and the likes of WHC begin running out of headroom on their debt facility pretty quickly.

So the possibility I see as potential is that coal prices stay in the toilet for at least the next six months WHC decides to do a capital raise at 60 cents to avoid problems from their banking syndicate in terms of EBITDA / Interest Cover ratio and we find ourselves around the previous low.

Can't wait to fill my boots, patience is a virtue.

Cheers

RobinH00d