Forum Archive Index - May 2002

["Peter" <pmaiden@today.com.au>]

Lot of interest around Austral Coal (AUO) recently. Looks like Gerry 
has drawn attention to another good prospect.

Another Australian coal company showing positive signs at the moment 
is Macarthur Coal (MCC).

Floated last July at $1.00 its price has reached $1.70 before falling 
back to $1.25 odd. Over the last week good gains to close at $1.37 on 
Friday.

MCC is on travk to make $15-16 million this year ( 3/4 of the year 
has gone) and is forecast to increase earnings by 15-17% next year. 
The growth coming from building upon its production base and its 
strong position in the growing PCI segment of the coal market. 

On forecast earnings a pe of about 11. In addition  the levels of 
returns more than cover MCC's cost of capital (ie adding real 
economic value to the company) and this is not reflected in the 
current price.

Like Gerry does with AUO I see considerable upside in the MCC 
shareprice.

For anybody interested in Australian coal stocks MCC is worth a look. 

Cheers

Peter 

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