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Stockchase Opinions

Jean-Francois TardifWestern Canadian Coal Corp.WTN.TOBUYDec 03, 2004

Coal prices have increased substantially and if they stay where they are, coal stocks should do very well.
$4.92

Stock price when the opinion was issued

non-base metal mining
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COMMENT
He would have taken some off but would have been wrong. Is moving because of the company that is taking it out. Flooding in Australia is going to make things better for Canadian mines.
HOLD
Have strong management. Not a bad deal. Wait before selling and enjoy the upside from higher coal prices.
SELL
In a merger agreement with Walter Energy (WLT-N) and doesn’t expect there will be any more offers. If you own, take your profit.
HOLD
Possible takeover by Walter Energy (WLT-N).
HOLD
Possible takeover by Walter Energy (WLT-N). Doubts there will be another offer. If you own, he would suggest you hold on until the deal happens as it could improve.
COMMENT
Has done well because of the general view on metallurgical coal, the outlook from a commodity point of view and its operations. Could use it as a trading stock. Currently not in it but looking for an opportunity.
WAIT
It has pulled back but is starting to show strength again. If it can break above $6.80 then it is worth buying. Wait until it hits $7. Chance it could drop to $5 otherwise.
COMMENT
Metallurgical coal market is still fairly tight. Prefers Westshore Terminals (WTE.UN-T) which pays a nice dividend and has less volatility.
DON'T BUY
Couple of years ago he had coal companies on this watch list. None right now. He doesn’t know their financial statements.
BUY
Great company but surprised that it is languishing in the low $4's. Key attraction to this coal company is that they are going to ramp up production faster than anyone else going into 2011-2013. Nice geographical diversification.
HOLD
Magnificent resurrection of coal and of the company. Not too comfortable with longevity.
COMMENT
Coal market is centred on what is happening in China. Any threat of China slowing down worries him that coal is going to suffer. If you believe in the long-term outlook for steel, demand for coal is going to remain robust. Little too volatile for him.
BUY ON WEAKNESS
When playing any of the coal stocks, you are really looking at what the macro environment is going to be. If China and economy does well, coal will do well. He would treat as a trading vehicle because of its volatility.
HOLD
Chart would indicate it has had an ABC correction so he thinks it has already had its correction. Also, the July low is a little bit above the February low. Thinks the worst is over.
BUY ON WEAKNESS
Will probably be under pressure until the Chinese PMI turns around. Long-term, coal stocks are probably good investments.