Is coal a buy into this weakness?

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Question asked 23/10/2021

Is coal a buy into this weakness?

Hi James, Would you still recommend coal stocks as a Buy given the pullbacks we've had? And if so, how much longer do you think they have to run? Thanks for your opinion. Jacky L.

Answer

Hi Jacky,

I can understand why investors are becoming jumpy towards the coal sector, our holding in Whitehaven (WHC) has fallen over 20% in 3-weeks but we should also pay attention to the rally its enjoyed since late 2020. At this stage the correction is very similar to the one in Q1 of 2021 and if MM had no position we would be aggressive buyers around current levels. Medium-term I can easily see $4 for WHC which is around 40% higher than Fridays close.

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Whitehaven Coal (WHC)

LAST UPDATED 23/10/2021 08:04

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