WHC has corrected over 18% in just 3 -weeks not helped by China now considering intervention in the market as Beijing attempts to rein in rising prices – while never a positive we cannot imagine even their rhetoric will have a substantial impact on prices moving into 2022. It’s a going to take a while and plenty of investment elsewhere to address the current supply and demand issues. A couple of points we feel are worth noting:
- We still believe WHC is very cheap compared to the coal price both now and where its likely to be through 2022.
- The combination of WHC directors continual buying and the company on track to be debt free in 2022 makes MM feel especially comfortable, we could even be looking at the next big dividend payer!
- MM is looking for a trading range between $2.75 and $4 over the coming months and we may tweak our position accordingly.
MM remains long and bullish WHC
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