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What are MM’s preferred coal stocks?

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What are MM’s preferred coal stocks?

Hi James & Team, How do you see the prospects of coal shares with partial lockdowns in China & talks of world recession? Would you please rank the investable potential of the following coal stocks in ascending order of preference? WHC, NHC, SMR, YAL, SMR Thanks & regards, Sidney

Answer

Hi Sidney,

No great change to our medium term view i.e. we regard any pullback in the coal sector as buying opportunity, its been a fairly volatile space over the last 2-years with Whitehaven Coal (WHC) for example correcting 21%, 37% and 38% during its strong rally hence pullbacks can almost be expected.

Our order of preference obviously depends on the respective prices and news at the time but at this stage it would be in order of preference:

  • Whitehaven Coal (WHC), New Hope Corp (NHC),  Stanmore Resources (SMR), Yancoal Australia (YAL) – YAL our least preferred as it is dominated by large overseas shareholders which I doubt have Australian minority shareholders  as their No 1 priority.

 

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Whitehaven Coal (WHC)
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