I owned quite a few coal names last year, WTN.V, FDG, PVM.V, GCE.TO, FT.TO, CEC.V and sold all. I kept the coal terminal trust WTE.UN.
I'm thinking of buying Wilbur Ross's ICGC.PK before it goes IPO after seeing his success with International Steel, but I also like S.TO, which has oil assets off Cuba, and lots of coal. Sherritt's stock has underperformed partly due to some convertibles hedge funds were using in a shorting trade but many of these have been repurchased.
Sherritt has a huge shareholder called Ontario Teachers. Teachers trusted FDG and PWT, both very quality names (quality is getting a little harder to come by in recent IPOs) and there is speculation Sherritt may trust eventually which would be a huge boost to the stock, and I'm sure all those teachers wouldn't mind the dividend income!
Sherritt's PE of 13 is lower than many US coal plays. BTU (43), MEE (43), ARLP (16), CNX (40), ACI (103). Sherritt's fwd PE is 7.5
The problem is this chart:
stockcharts.com
The US names outperform the Canadians and even with FDG's dividend the performance isn't as good as the Canadians.
So, I'm leaning to ICGC. Comments? |
