Not sure, why BND has fallen to these levels, sure their has been some speculation around thermal coal being replaced by alternative energy sources in the Long term and coal prices have taken a wack. At the moment they are too low to support the cost of production, however we all know that coal has a future and will not be replaced overnight by these altenrative sources. Coal prices will rebound as in most cyclical trends. China, India, emerging ecos will need to start to ramp up their demand and prices will rebound- it is coming. It is also myth that gas, LPG and other forms of gas energy are a cleaner source of energy compared to thermal coal. Market is not rationalle and these prices are ridicilious, BND is pure value and their is no real evidence or information to support otherwise. Let wait for that Xmas rally. Sellers are drying up and that is a good sign.
Another thing to watch out for is BND being swallowed up a biggger producer, causing the SP to bounce. At the moment
BND is keeping its head above the water and treading- waiting for the right time to pounce, while some other coal explorers are so highly geared.
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