Krasnoarmiyska-Zakhidna Coal Mine Listed

The Krasnoarmiyska-Zakhidna coal mine was listed yesterday on the PFTS stock exchange, with the ticker SHCHZ. Until yesterday, the Komsomolets Donbassa coal mine (SHKD: BUY) was the only representative of the industry on the PFTS. The session opened with $0.14/$0.42 bid/ask quotations (a spread of 64%). Eugene Cherviachenko: The ask price implies the following 2006E multiples: P/E x5.8, EV/EBITDA x2.9, EV/S x1.2, leaving a 45% upside to our target of $0.60/share. We have a BUY recommendation for this stock.