Yesterday saw WHC make new 18-month highs, up almost 300% over the last year. This is one company where we have no intention of fading the move for a number of reasons:
- Insider buying has been encouraging over the last year, I feel the company might start to turn itself around operationally.
- Fading rallies is worth considering when trades are / feel crowded but that’s definitely not the case with the likes of coal stocks.
- Fund managers have almost been scarred to be heard discussing fossil fuel stocks which has led to the respective stocks such as WHC becoming very undervalued, especially compared to the underlying commodities.
- When we look at the coal price its easy to pose an argument for WHC doubling again!
Its one thing for a fund manager to be wrong but imagine trying to explain to investors in today’s new green world why you underperformed being long fossil fuels!
MM remains bullish WHC
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