I was going to buy these when at 108p few months ago but never had the courage. They reached new heights of about 134p recently but have slipped to around 113p at present.

They have a massive yield of 10%.

Does anyone have any views about buying into these.

I would be content to just have 10 or 20 per cent increase over the next year on thse if i got my 10 % divi.

Thanks

dividend should hold and the possibility of land development, if it comes off is a bonus. I'm in for a 10% plus gain ( I hope ).

The charts are indicating support around 130 so now is about the time to buy.

Screen,

The charts also indicating resistance at 140.
Could go either way.

Strong article in this weekends FT outlining rerating of land values due in next few weeks & 7-8% dividend yield expected. Despite force majeure this shows real potential

Yes it was quite a plug for the shares in Saturday's FT!

I like the land bank potential but Millgate Capital Inc reduced holdings from 5.33% (11/02/05) to 3.08% (17/02/05) and on 21.02.05 had no significant holding. Does this tell us anything ?

g6496,

yep i read that too, report was positive although i think they still have to obtain PP before they can commence selling the land bank.

one small worry may be falling development land prices...

Agree with earlier comments but the recent profit warnings and dividend cut has turned sentiment negative. A 60 day moving average has been profitable here in the past combined with two month positive relative strenght. I will wait for these before buying here again.

After this mornings story in the FT speculating about a bid from American venture capitalists, the price has broken the two criteria that I talked about yesterday.

Back up to the heights of 134 - any idea if the VC is looking at the land bank as the main value?

I would speculate that it is a combination of the land value and rising coal prices internationally which UK Coal missed out in the past on given the long time that they are locked into contracts. When these expire they should be able to get much higher prices with a nice resulting cash flow kick in.

From what I read the lock ins cover most of their production - any ideas when some of these expire?

Sorry I don't know. But rest assured the venture capitalists would know as I would guess that they would use the higher cash flow to pay down the loan for the acquisition until they can sell off the land back. Classic venture capital stuff. There is also an American now in charge and they are big into this sort of thing and I would be very surprised if he is not somehow assisting, i.e. the dates the lock ins expire!

Announcement confirms VC approach & a possible 160p bid:

'UK Coal PLC confirmed this afternoon it received a tentative takeover approach some weeks ago.

The UK's largest coal company added it asked the interested party for clarification on certain aspects of the approach but received no 'substantive' response.

The company said 'there can be no certainty that any offer will be forthcoming.'

Earlier, UK Coal shares surged on speculation that a private equity group could launch a 160 pence per share offer for the group. '

Back to the drawing board - oh this does sound interesting and profitable all around

Much speculation on a takeover again..I wonder if it will come of anything this time - Maybe news with interims this week?

Very good news for UK Coal - this is a BUY

The Mail on Sunday reported that UK Coal's property director Jon Lloyd is expected to tell analysts that its 50,000-acre property portfolio, which it has on its books at 274 mln stg, could be worth double that.

Meanwhile, the Independent of Sunday reported that UK Coal is to tell the City on Monday that it is sitting on a gold mine, with development hopes boosting the land value to 500 mln stg.

UK Coal is tipped to double from now by my sharebroker.

Good news again...BUY at 407p



UK Coal PLC
16 November 2006



16 November 2006



UK COAL plc ('UK COAL' or the 'Company')



Placing to raise 30 million

The Board of UK COAL announces that Bridgewell Limited has, on behalf of the
Company, completed a placing (the 'Placing') of 7.4 million new ordinary shares
of 1 pence each (the 'Placing Shares') at 406 pence per share to raise gross
proceeds of approximately 30 million. The placing price represents a premium of
approximately 2% to the closing mid-market price on 15 November.

The Placing has been undertaken in order to strengthen the Company's balance
sheet and increase financial flexibility which had become somewhat constrained
following reduced coal production during the summer. The proceeds of the Placing
will initially be used to reduce the Company's net debt.

The Placing Shares will, when issued and fully paid, rank pari passu in all
respects with the existing issued ordinary shares of the Company.

The Placing is conditional upon, inter alia, admission of the Placing Shares to
listing on the Official List of the UK Listing Authority and to trading on the
London Stock Exchange's market for listed securities (together 'Admission').