Report Cover Page

Contents

Where are we in the Cycle?
International Monetary Fund warnings of another growth downgrade highlighted once again the poor cyclical backdrop to which resource sector investors must respond in framing their decisions.    More...

Market Directions
Markets have been disrupted again by mixed messages on U.S. interest rates and fears that central banks are reaching the end of their powers to affect asset prices.    More...

Portfolio Performance and Positioning
Positive sector returns in the week were dominated by movements among Phase III companies indicating the influence of professional money. Early stage companies still faced difficulties holding gains. Whitehaven Coal and Universal Coal were added to the Phase II sub-portfolio based on valuation and diversification needs.    More...

Stock Reviews and Rating Analysis
Whitehaven Coal (WHC:AU), an expanding New South Wales coal producer, has been rated ‘3+’ on the PortfolioDirect five point rating scale. The company offers investors leverage to any improvement in international coal market conditions, a value proposition based on rising cash flows from expanding production and a falling operational and financial risk profile. Strong share price gains have closed the previous value gap but the company does retain potential for future value momentum to underwrite higher longer term share prices. The quality of the coal produced by Whitehaven Coal can assist in lowering carbon emissions making it a sought-after alternative to other coal types.
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