The Bottom Line

We continue to like the coal space over the coming months but like  all commodity cyclical stocks we won’t ]get married to the space, i.e. we can see ourselves taking profits if our thesis plays out:

• We like WHC targeting a break of ~$10, or 15-20% higher.
• We like NHC targeting the $6.50 area, or ~10% higher.
• We are cautiously bullish toward YAL but it’s not for us.
• We are cautiously bullish toward BTU looking for it firm along with the sector but we are likely sellers 5-10% higher.