Is JRCC a value?

**wubin_99** Wed Mar 05, 2008 9:31 pm

Is JRCC a value?
JRCC posted big loss for the 4th Q, 1007, but the outlook for the company is very good (uncontracted coal shipment for the second half of 2008 and 2009), providing the current high coal price.

Can blast or some else comment on this company and the coal industry?

THanks in advance.

**blast_investor** Wed Mar 05, 2008 9:44 pm

Re: Is JRCC a value?
wubin_99 wrote: JRCC posted big loss for the 4th Q, 1007, but the outlook for the company is very good (uncontracted coal shipment for the second half of 2008 and 2009), providing the current high coal price.

Can blast or some else comment on this company and the coal industry?

THanks in advance.

I think JRCC stock is still attractive at this moment in the middle of very bullish coal market.

The risk with JRCC is that this is relative small company with very volatile earning going forward. This is just nature of this stock due to high cost base of JRCC operation and very low profit margin JRCC is having currently.

If you are confident on coal market and can tolerate the volatility of JRCC, yes this is attractive. But otherwise, you might want to avoid or look for another less volatile coal stock with higher profit margin to avoid the risk and high volatile nature of JRCC stock.