WHC endured a savage 36.8% correction following Chinas intervention in the coal market as they tried to soothe domestic tensions as an energy style crisis unfolded across the world’s 2nd largest economy. Prices were sent down around 50% in just a few weeks in a move not unlike that experienced by iron ore. The coal price remains supressed but following the move by China to cut its lending rate on Monday, in an effort to stimulate their economy, we feel the worst is behind the coal price and in similar fashion to iron ore stocks WHC looks good from a risk / reward perspective i.e. we can see a test of $3 into 2022.
MM remains long and bullish WHC
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