West. Coal Share Discussion Threads

[seagreen] 10/7/2010 10:24

All aboard time again perhaps ?
up over 5% in Canada last night

[waggle] 09/7/2010 17:02

rs2000, an interesting comment from a friend at Braemar who tells me that BDI plunge is due in the main to oversupply of new vessels rather than decline in volumes, and needless to say the chinese are exploiting it for all they are worth!!

[seagreen] 07/7/2010 18:49

rs2000 good to have your technical thoughts I have gone long again a smidge as it is a quality company not worth taking a huge view on anything right now...but it does look awfully cheap now

[rs2ooo] 06/7/2010 22:49

RS2OOO - 14 Jun'10 - 18:39 - 664 of 680 edit

Not keen on BDI chart at present.

------------------------------

When I posted that, even I didn't expect it to follow through with such velocity.

As for WTN, my charts are showing a few things of interest, and there are more bullish factors than bearish ones, however, sticking to the letter of the law (my system), no buy signal has yet been given so I'm staying out but aware of the fact I could miss a rise.

However, and this is not a downside prediction by any means, if 185p - 195p is reached, I will be a buyer even if my system doesn't signal a buy.

No point annoying the non-TA regulars by filling these pages up with more charts until something more concrete arises, but I'm keeping my eyes open.

[waggle] 03/7/2010 10:32

yes it is most certainly a very much more attractive proposition for any acquirer now that finances/balance sheet are cleaned up;not to mention the cash flow positive attractions?? if dana get taken out at £18 then the proceeds will go straight here..andthe dana example shows that an 80-100% premium is perfectly attainable.

[edmondj] 03/7/2010 08:17

Indeed so:



Ideal time for an industry bid here?

[edmondj] 02/7/2010 17:08

Double-dip recession fears, most likely, i.e.'expectations of the fundamentals'.

[qs9] 02/7/2010 16:23

Hasn't helped the SP, very weak, is there a persistent seller out there or have fundamentals changed?

[edmondj] 01/7/2010 14:16

My God, directors actually BUY shares here!

1 July 2010

Director Shareholding

Western Coal Corp. (the "Company") has been notified that on June 28, 2010, Mr. David Beatty, a director of the Company, indirectly purchased 50,000 common shares of the Company at a price of CAD$4.23 per share . As a result of this transaction Mr. Beatty now has an interest in 71,500 common shares of the Company representing 0.02% of the Company's current and outstanding share capital.

[peterblok] 29/6/2010 22:45

Welcome back pbracken

[pbracken] 29/6/2010 17:51

Just picked up shares Canadian at $4.27. Seems a tad savage, the discount to forward earnings. My first punt in months. Nice to be back in the WTN saddle.

He says.

[pokerbrat] 29/6/2010 17:26

Broken pap, just as all patterns are eventually. And this time to the downside, which means a test of $4 and the 200SMA is on the cards.

In true TA, you would target the move out of the triangle by measuring the size of the mouth of the triangle (in this case about $1.30) and extending it from where the triangle was borken. So that would suggest we could fall as far as $3.

You gotta love this stock, it's so volatile that it is a traders dream. Not so much fun for the buy & hold investor though.

[papillon] 29/6/2010 16:03

How's your triangle poker brat?

[pokerbrat] 24/6/2010 12:15

Quiet round these parts, isnt't it? Probably a reflection of the sideways action as WTN continues to consolidate within that triangle. There is room for more downside before we test that lower trendline.

[edmondj] 21/6/2010 11:36

'Onwards and upwards', medium-term, if the CEO's bullishness on a two-year view is justified.

[qs9] 21/6/2010 10:29

Nice big blue start....where to today?

[pokerbrat] 19/6/2010 09:37

Price action is consolidating within a triangle pattern at the moment, which would indicate that the next move will occur when it breaks out of this. Either we go up to test resistance at $5.50 and $5.90, or down to retest the $4 support area.

I am leaning toward the bullish scenario, given the broader market action and the bullish indicators. The chart shows the On Balance Volume (OBV) indicator. This compares volume traded on up and down days, so a rising OBV indicates more shares are traded on up days than down days. And vice versa.

Notice how the OBV is testing its recent highs even though price is well below its highs. This is a sign of accumulation.

Of course, nothing is certain and indicators are simply that; an indication.

[pokerbrat] 17/6/2010 14:32

I would like to see a close above $5 by end of this week to confirm the bullish picture with a break above all that resistance I mentioned before. If we get that I see a rise to $5.60 area to test resistance and the 50SMA. For me, that would be a level at which to book some profits and take a little risk of the table.

[remp31] 16/6/2010 09:45

that explains the rise this morning but will it have any effect on the can price as it leads the london price?

[lasata] 16/6/2010 09:32

Western Coal shows ambitious growth plans while GlaxoSmithKline shares show a good entry point, Questor says buy.
cheapest way to buy WTN is through EBG imo


By Garry White, Questor editor
Published: 6:00AM BST 16 Jun 2010


Here's a US stock you can really get your teeth intoQuestor says BUY

Speak to any mining analyst in the City and they will all say a similar thing about bulk commodities such as iron ore and coal. The demand and price outlook is extremely positive - much more positive than base metals.

Questor remains a bull of the coal price – and Aim-listed Canadian group Western Coal has one of the best production growth prospects around.

The company plans to increase its output from 3m tonnes a year to 10m tonnes over the next four to five years. It plans to do this organically and without raising new money. It should be able to do this from cashflow.

The company has also made some strategic acquisitions in the UK. Last week, the company bought the rest of the shares it didn't own in Energybuild, which produces deep-mined anthracite coal and coal from open-pit mining in Wales at Aberpergwm. Western hopes to increase production here too.

The group also bought Aim-listed mining investment group Cambrian last year in an all-share deal.

Western's main assets are found in north-east British Columbia in Canada and West Virginia in the US. The group has a 20-year coal reserve base.

The company offers exposure to the seaborne coking coal market and the US thermal and metallurgical coal markets – the price of all these products is likely to rise as the global recovery takes place.

Last year was not a great year for the company as prices for all types of coal plunged. Revenues fell 25pc to C$438.6m (£290m), which caused profits to slump by about 80pc.

Coal contract prices fell to $126 (£85) per tonne for hard coking coal and $90 per tonne for ultra-low volatile pulverised injection coal, compared with $300 and $248 respectively in the previous year.

Keith Calder, president and chief executive, expects prices will be higher in the upcoming quarter – and it certainly does look like the market has reached a bottom.

Indeed, coal's share of global energy consumption rose last year to its highest level since 1970, according to BP's recently issued Statistical Review of World Energy. The report also noted that China's coal consumption last year rose by 10pc and India's by 7pc, exceeding growth in GDP. This trend is likely to continue.

Western ended last year with C$136.1m of cash and C$82.6m of debt, so the balance sheet is strong. The bulk of the debt is in the form of equipment leases.

In 2011, the group expects to produce between 3.7m and 3.9m tonnes of metallurgical coal from its Canadian operations – a 75pc rise on 2010 production. It expects to increase US coal production by 70pc this year to 1.7m tonnes. This is an ambitious target, but the group believes it is achievable.

For a company that has low debt and a strong growth profile, the shares appear undervalued. They are trading on a March 2011 earnings multiple of just 5 times, falling to 4.3 in 2012.

The analyst community is unanimous in the view that the group is undervalued. Of the eight City analysts that cover the company and are monitored by Bloomberg, all of them have a buy stance and the average price target is 506.6p a share, which is some 60pc above the current share price.

The Aim listing is the company's secondary listing, with the main listing being in Toronto, where the company has a market capitalisation of C$1.6bn. The shares are a buy for their growth prospects.

[rs2ooo] 14/6/2010 18:39

Not keen on BDI chart at present.

[lasata] 14/6/2010 14:55

EBG are cheap way into these......work the conversion out and you will see.

[remp31] 11/6/2010 16:24

gce outperforming us at the moment.