WHC -7.85%: Coal stocks generally were hit today after China’s top economic planner said it is studying ways to intervene in the coal market as the government tries to rein in rising prices and curtail shortfalls. Intervention can be a negative (clearly) however ultimately it speaks to the tightness in the market however it’s difficult to see what they can do that will have any substance in the short term. This is a longer term issue and one that will persist until investment in other areas ramps up further. In Australia, WHC was down by as much as 10%, Yancoal -7% while in Hong Kong: Yanzhou Coal fell by as much as 12%, China Coal Energy -8.6%, Shenhua Energy -7.7%.
MM remains bullish WHC and a buyer of dips for now
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