mkt depth vol activity etc, page-37

It's a fair question.

I typically buy a small amount (large by others definitions) based on an hour or 2 of reading. I then go further and further as I find out more and more. I never contact the company directly till I have done background but I research in order of importance and the history of the company was not as important to me as the future so I concentrated on TinCom, Arup and some of the other issues like does the technlogy actually work. Unfortunately for me the announcement about TinCom came when I had only picked up a small holding so I had to hurry up a little. I have now done about 20 hours+ of reading and phone calls and asked 2 people I trust to review my thinking on it.

For some people putting $20k into this should take a year of research and for others a few minutes.

For what it is worth I don't feel like a passeneger on a train wreck but instead I feel like someone who has been lucky enough to avoid the past 4 years. In RRS (note - I am not recommending that stock) there were some of us who felt like we were on a train wreck for 4 years and now it has worked out. The lucky ones who arrived in the last 18 months are very fortunate and I hope that in the next 18 months I turn out to be a lucky one here in ESI who arrived in the payoff zone.

There is no doubt this is my riskiest investment currently in the portfolio but it seems a better bet than Somalian oil and I fell for that one!


Like I said - it actually reads to me like about 100 other companies (many of which have gone 5x or 10x up) that had good prospects but have been delayed by funding and slower take up of their product.

If, as you say I have put $400k into it then some others must be doing the same because the SP seems to have changed it's behavior a little. I suspect in the past it might have capitulated all the way back to under 2c and I assure you I haven't bought enough to keep it from falling if it's going to fall. It would only takes 5 or 10 or 20 investors to buy $400k as you say and I suspect this stock would be seen in a very diferent light and then all the chart talkers would arrive and suddenly the stock has been rerated. There must be a good story and successful technology which ESI seems to have - then all you do is add money.

If they announced a 5 for 1 consolidation and appointed AIM brokers for a $5m capital raising from the AIM market I bet this stock would be 4x higher (after consolidation).

Coal is not the energy source of the future and Brown coal is certainly not the right way to go for generations to come but like it or not coal is definately going to be a huge player in the next 20-30 years and if brown coal can be transformed then Asia will soak up so much your head will spin.

Our whole country is riding a massive wave of China prosperity and 2 thirds of it is coking coal and iron ore. Coaldry and Matmor (from what little I understand) are high potential beneficiaries of that story. Coaldry is also (again from what I understand) a viable potential source of cheap energy for the poorer Asian economies. The population base in Asia is so hughe that people just don't comprehend yet how high commoddity prices are going to go over the next decade or 2. Most people think we have seen the peaks.

As I have mentioned before the Japan nuclear incident has stopped all nuclear development outside China for at least a generation an the supply response for oil and gas will be swamped by the demand redistribution from nuclear and Asian growth. In the short term (ie 10-20 years) coal will be the plug as it is sucha cheap alternative.

Enough of my babble - if I lose what I put in I can afford it and I have done enough research for me. If I discover something really bad then I will sell but at this stage all I have discovered is a pattern that is repeated many many times by companies all over the world over the last few years - and IMHO this company could be valued between $100-200m prety easily on what is has which is probably about 10c in the heads after dilution. If they can secure the required working capital for about 1 or 2 years then the options come into play as a financing tool as well.