My reasoning for buying in to NHC at these levels is threefold:...

My reasoning for buying in to NHC at these levels is threefold:

1. I think we are at, or close to, a low point in the coal price cycle. A number of operators are getting close to becoming distressed sellers and there is very little new investment in coal mines at the moment. I think at most it will be a year or two before the price starts ticking up again.
2. They are now trading at around fire sale value of all their assets so very limited downside.
3. They are cashed up at the right point in the cycle. Distressed assets will likely come onto the market over the next year or so and they will have the balance sheet strength to snap them up.

Don't get me wrong I don't see the share price skyrocketing any time soon. This is more like a 10-12 year play for me where NHC will move up the chain in terms of dominance in the coal mining sector. Unless a great opportunity to sell comes up before then of course.

All imo dyor.