dir buying heaps, acumulate, good short or long te, page-12

re: gone elsewhere I really don't see much risk in the stock if you are happy with current prices (39-44cents). But why keep money in a stock you THINK it is going to be relatively stagnant for a few months and can get back in (albeit after you miss out on the initial two or three cent price rise). The two contracts are unlikely to fall through but people still like cash flow rather than predicted cash flow so I reckon the price will creep up only slowly. The major risk, from what I can tell, is that CBM drilling over the long-term as well as reserve certification remains a developing science. My question is: if they have so much surplus gas why haven't they sold more contracts? They haven't even talked about it...always mentioning the power station to use the surplus gas...and that involves its own uncertainties.

Overall, I think this is a pretty low risk investment in the long-term assuming new contracts will be found. However, I tried to find old estimates of profits from the current contracts to devise a forward looking P:E ratio but couldn't find the figures...I think it was around 6-7 million, if that is correct, that aint to exciting unless new contracts are assured.

I'm not really much of a speculator (although it may sound like it), I held this stock for 3-4 years and have made around 200% on it, so maybe that explains my "live and let live" approach to this one. Its a good stock, I just had limited capital and got really interested in another stock which i needed the cash for.