Whitehaven Coal Limited

• Strong March quarter performance: Whitehaven Coal Limited (ASX: WHC) surged over 9.7% on April 14, 2016 driven by its strong march quarter performance update. The group delivered a strong ROM coal production rise by 21% yoy to 5.7Mt for March quarter while quarterly saleable coal production for March surged by 28% yoy to 5.3Mt. Coal sales March quarter increased by 48% yoy to 5.5Mt. Production ramp up at Maules Creek is on track and delivered 2.0Mt ROM coal for the quarter. Maules Creek further ramp up stage to 10.5Mtpa would start next year. Management reported that they are on track to achieve their fiscal year of 2016 guidance for saleable coal in the range of 19.5Mt to 20.1Mt.
• Recommendation: We give a “Speculative buy” on this stock at the current price of $0.735

GUD Holdings Limited

• Offloading non-core business: GUD Holdings Limited (ASX: GUD) stock surged over 9.7% on April 14, 2016 as they made an agreement to sell their 51% stake in Sunbeam Corporation Limited as well as their 49% share of Jarden Consumer Solutions (Asia) Limited to the group’s joint venture partner Sunbeam Products, Inc. which does business under Jarden Consumer Solutions (JCS). With this move, the group would get a cash of over $35 million. On the other hand, we believe that this is a short term rally, and the earlier pressure in the stock would continue in the coming months. GUD stock corrected over 18.3% in the last six months (as of April 13, 2016) and still trading at a very high P/E.
• Recommendation: We give an “Expensive” recommendation for the stock at the current price of  $7.92