the good doctor recommends coal (again), page-22

Regardless of whether most feel Edison\GMP is undervalued at least they are brokers willing to give this Coy a shot at a valuation... Yet history will once again show that they were way off the mark.

A hugely accelerating Coy that will be making near 1c ps in earnings near or in 2012 then onward and upwards in earnings. What do people think this Coal Coy will be valued on a forward PE basis when they are making these sort of earnings. PE= 10... Ohh come on- these hugely growing Coys are valued 100x when earnings are accelerating and production growth at the same time.

Take a look a Mid Tier peers that have been growing and have ever increasing earnings and ramping up of production. Aka WHC... reminds me of WHC in 2006. Many having gone through the GFC 2008. I remember riding this whale during the last few years from small to mid tier status. Given the right Management and resources these stocks can take off to the moon. I remember reading a similar report on WHC in 2006 that had very similar tonnage out take goals by 2011 to what Conti has in 2015. Now WHC is worth 3.5 Billion in late 2010. I like these comparisions because under good Management and good resource projects we can see what is possible or probable.

Making earnings of 1c that will quickly grow to 2c... or 27M to 55Mil Approx pa in the years ahead then upwards and stabilize. At 1c history tells us our forward earnings ratio will be between 40 to 100 + PE. Dependant on the outlook of coal and global economy being a factor.

One thing is for certain IMO is I do not believe we will be on the poorer side of 20c when some serious dollars are coming in over the following months.

This is a HUGE growth phase for the next 3-5 years... u can bank on it. IMO. These reports are foolish as most attempting to give guidence on Up an Coming Coal Coy's have been WAY OFF the mark in previous years. They are paid for exercises that mean very little.

Find the best up and coming Coal companies then ride them to the moon IMO. As the last decade has shown me... even riding out the 2008 crisis... because everyone needs COAL for many decades to come. Conti is one of them since the acquistion anyway...

IMO- DYOR... I look forward to this Coy making 10 then 20 then 50Mil pa in the years ahead. Valuations will then be based on earnings of 50x due to huge growth. Time to be in the stock is JUST BEFORE earnings take off. BEING NOW...

Take broker reports with a small grain of salt IMO. Heavily discounted and not appropriate valuations IMO. Yet they get an C+ for trying- Lol.

Here is another link to the magic 8 ball- Lol...ask the magic 8 ball it if we are over $1 in a year. Lol. The magic 8 ball will probably get closer to forward 12 month guidence on the SP...Good Luck.

http://lord.xopl.com/ulpage3a/8-ball.html

Magic ball told me lower than $1 but higher than 30c. I will place my bet with the magic ball rather than the broker reports. Targets of 12-14c do not appeal to me.

Cheers JAY