price alert, page-20

There's a tendency to think of Peter Bond as a magician; he's pulled off so many coups over the last few years. If he pulls off an adequate sale of Teresa, to Xinwen or anybody else, I'll call him a magician.

The only way he could inject more progressive assurance into his statements about the Teresa deal would be to get onto brr radio, or somewhere like, that and literally explode with confidence about it. Maybe FNN network would be better for the visuals. Then we would hear the interviewer commenting as they tidy up the little confident fragments of Peter Bond, still glowing, fizzing and sizzling with confidence.

For what it's worth, I read one commentator yesterday who doesn't think the deal will happen: Tom Elliott, of Eureka Report. He says,

"Linc Energy in Perth effectively had a deal to sell its coal assets for $1.5 billion to China's Xinwen Mining Group, for more than its market capitalisation. Well, when you look coal prices, you’d have to say that the fact that the deal hasn’t yet been completed means it’s probably going to fall apart. It was always subject to a few things like permissions from the relevant Chinese authorities. My view is the Chinese are doing whatever they can to pull out of it."

It's just another opinion and not worth more than anyone's here really. It's a bit unfair, but here's the same guy writing about the BHP bid for RIO on Nov 9 2007:

"BHP MUST DIG DEEPER. If BHP wants Rio, we’re talking $150 a share.
What to do with Rio shares? Investors should absolutely hang on to their Rio Tinto shares. This is just the first bid. The company is now in play and nine times out of 10 companies that are in play get taken over, so you definitely don’t want to sell into the first bid . . "

http://www.eurekareport.com.au/

Just my chart view, but $1.50 must hold if we're not to get a resumption of downtrend. The only thing that would save it from significant erosion if that support is breached would be an early resolution of the sale, or some other compensating phenomenal news. A failed Teresa sale I believe will see the price down to a dollar, and possibly down to 50c.

I am not a chartist. I have no short position or plan to buy Linc cheaper. I hold 80% of my original shares. I would quite likely add if it got as cheap as $1 or 50c, but maybe not. I am not saying it will get that low, I just see it as possible.