Nightmarez3k
2022-04-07

$New Hope(NHC.AU)$


Hold or Buy more?


New Hope corporation high quality company on the asx producing high quality thermal heating coal. It's one of the lowest coal price producers in the world.


The price has more than doubled since last year with run up of coal due to pull from oil prices and coal. The Russian-Ukraine war now has potential to push up coal demand as Russian gas is replaced with coal and further by Russian coal exports sanctioned soon as well.


So where to from here hold or buy more. I am inclined to hold have held from mid $1 entry. The current dividends are quite juicy being 30 cents for last half year ending in Jan 2022. Full year could be another 30-50 cents. Looking at coal prices they have averaged another $50usd/tonne to 100usd/tonne then last half yearly results. Currently, on PE of less than 6 on trail earnings but PE of 2 or 3 with sky high coal prices if they persist the full year.


My current strategy is to hold until the trend turns in coal price or ceasefire in Ukraine and collect the big dividends for next year and keep holding long term.

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Comments

  • Nightmarez3k
    2022-04-07
    Nightmarez3k
    Buying or selling exhaustion? I think buyers maybe worried. But the current coal prices may drive fundamentals if they persist to make it irresistible as cash piles in.
  • frosti
    2022-04-07
    frosti
    It is not a good time to bullish,but it still has a great potential.
  • nimbly
    2022-04-07
    nimbly
    It is a great valued stock.
  • MR_Wu
    2022-04-07
    MR_Wu
    Yes, unless there is a de-escalation in Ukraine, there is no need to sell the stock.
  • PandoraHaggai
    2022-04-07
    PandoraHaggai
    For now, coal prices look set to continue to rise.
  • MortimerDodd
    2022-04-07
    MortimerDodd
    Trading volumes on NHC.AU have been thinner and thinner lately.
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