WHC ended November on the front foot rallying over +8% following a 30% pullback from its early October high above $11, we believe this coal producer can remain strong over the coming months as the supply side clouds for the sector while demand looks set to remain high for years to come. Longer term as supply tightens with people starting to almost abandon fossil fuels for ethical reasons the world could see itself with a few very tricky years before ESG alternatives fully evolve and demand for coal falls away. Hence the huge free cash flows for the likes of WHC should be ongoing leading to massive buybacks and dividends for investors who are comfortable with elevated volatility.
- We believe WHC can continue to rally into Q1 of 2023, the Northern winter, with our target of a test of at least $12 remaining very much on track – Rocky’s target is $15.
MM remains long and bullish WHC
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