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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