"CEY boasts excellent management, strong growth prospects, an enviable track record and a core of stable A$ revenue from domestic contracts. The key attractions remain the modest prospective FY06 PE and the respectable unfranked FY06 yield. CEY has the potential for increased higher value export production to underpin earnings growth in the medium term, with longer term growth accounted for by the new flagship Anvil Hill open cut mine. Export thermal coal prices should remain supportive while infrastructure bottlenecks restrict supply and Chinese energy demand remains buoyant. CEY could serve a role in portfolios seeking a defensive growth stock. Following the AUO merger agreement, we upgrade our recommendation from Hold to Buy below $5.00. "
CEY Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
