Australian Stock Report - Share Tips

Share to buy - Whitehaven Coal (WHC)

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Publish date: Fri, 15 Apr 2016, 02:04 PM
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Our stock analysis blog provides information on stocks to watch and helps you figure out which are the best stock to buy. We use fundamental and technical analysis to identify the stocks tips that will supercharge your portfolio. We don't believe in choosing stock tips on rumours or hearsay. Our share tips use fundamental analysis, like price-to-equity ratios, cash flow analysis and net tangible assets, to identify the best share trading opportunities. We then use technical analysis, which is the study of price charts, to determine the best level to buy shares. We believe using the two school of investment analysis allows us the increase the chances of our share tips being successful.

Until recently, we’ve viewed a lack of market confidence as mis-pricing WHC.

Over the journey, the company has maintained an earnings margin average of $13/t but it appears the market has been factoring in the future coal price and giving management little benefit for being able to sustain its margins, despite its track record.

The risk lies with the thermal coal price outlook and whether China continues to retreat from the trade.

Today the company announced record high ROM coal production of 5.7Mt for the March quarter, up 21% compared with the previous corresponding period and 44% YTD.

The company also recorded its highest quarterly saleable coal production of 5.3 Mt for March, up 28% compared to a year earlier, and 48% YTD.

Whitehaven Coal says that it is on track to meet FY2016 guidance for saleable coal to be in the range of 19.5 Mt to 20.1 Mt.

The miner says that costs guidance for the full year FY2016 is now expected to be $57/t.

We think momentum can now build in the stock and are prepared to be buyers..

The post Share to buy – Whitehaven Coal (WHC) appeared first on Australian Stock Report.

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