Today, we are looking to enter a Coronado Global Resources (CRN) position. They are a coal-producing company operating mines in Australia and the United States.
The company has solid fundamentals and is in the right space to take advantage of the currently elevated prices for coal.
Many of the reasons for entering this position are outlined in a recent detailed research report published on our website, which you can view here.
In the March quarterly report, the company said its prices (and revenue) touched record levels due to strong global demand. The disruption caused by European countries no longer taking Russian coal means prices will likely remain elevated for longer than expected.
The record revenue and profitability have allowed the company to increase its dividend payments. As a result, the company recently announced a US$0.1193 dividend, equating to a dividend in AUD of $0.168. The ex-dividend date for this dividend is coming up on the 30th of May.
With the current market uncertainty, it is becoming more challenging to find companies that fit two of the criteria we like to see before opening a position. One is increasing earnings whilst the other is a strong underlying trend. In CRN, we have found a company that ticks both boxes
TRADE ACTION
Number of shares: 3,000
Buy up to $2.40
Stop Loss: $1.90
Target price: $3.00
