Many analysts are tippping thermal coal to be bulllish this...

Many analysts are tippping thermal coal to be bulllish this year.

This is why I have chosen JAL (Jameson Resources) as my pick for 2010

reasons:

- current JORC high quality resource 124 mt (currently being expanded)

- in existing Canadian coal province

- most infrastructure already in place

- capex estimated as being a third of a typical aussie operation startup

- will be producing by years end

- coal is highly sought after from this area

- tiny 25 million market cap







example of coal producer P/E ratios

Macarthur coal - 11.92

Centennial coal - 18.72

whitehaven - 7.32


average of these would be around 12.5

at 1 million tonnes a year JAL should make 13 or 14 million NPAT


12.5 x 13 = 162.5 million market cap ($2.56 a share)

that is eight times the current price

get in now, sit on it for the medium term and you will be greatly rewarded.

canadian thermal coal is a hot commodity