JRCC: Why not a Canadian Coal Trust?

**ShaiDardashti** Sat Dec 03, 2005 6:54 pm

JRCC: Why not a Canadian Coal Trust?
Wondering if you can comment on your site why you chose to buy JRCC as a coal investment, rather than a Canadian Coal Trust - like Fording?

- Was JRCC particularly cheaper?
- Is there a significant difference in the upside & downside risks?
- Was the a tax considertaion?

Thanks,
Shai

**blast_investor** Sat Dec 03, 2005 7:17 pm

Shai,

You can search term "FDG" for my past comment on this Canadian stock Fording. I am not big fan of it.

I mostly spend my stock research time on US stocks, so that I am not very familiar with other coal stocks trading in Canada.

It is big hassle too to trade Canandian stocks. Most US brokers do not offer easy access to Canadian market.

Do you have any good picks on Canadian coal sector?

**abyli** Thu Dec 08, 2005 1:04 pm

I just read the company's outlook for 2006. It seems that the cost is rising because of inflation, like higher steel price, etc. The cost per ton is more like $38.5. Add the $2.1 per ton SGA, you get $41 cost per ton. The depreciation and Capex are similar(doubled from previous guideline), that is another $5-$6 cost there. So the company need like $46-$47 per ton selling price to break even.

If the company's guidance is right, the company will not make any money in 2006. Of course, if the sale price becomes $60 per ton, the company could make $8 per share, making it a $80 stock.

blast_investor wrote: Shai,

You can search term "FDG" for my past comment on this Canadian stock Fording. I am not big fan of it.

I mostly spend my stock research time on US stocks, so that I am not very familiar with other coal stocks trading in Canada.

It is big hassle too to trade Canandian stocks. Most US brokers do not offer easy access to Canadian market.

Do you have any good picks on Canadian coal sector?