One of the most unrecognised traits of human behaviour to do with stock investing is the strong tendency to over prioritise or give too much weight to what are essentially short term factors and events. Recognition of this plus recognition that any stock will tent to return to its long term value are two of the things Buffett recognised to build his fortune.
Of course the approaching cyclone fits in this category, spooking share buyers, but of course BCB has a list of commitments to pay in the next couple of years and months,and a cessation of production for weeks because of flooding problems both at the open cuts and service roads and in the rail and port infrastructure would or will be a blow.
But, it will impact all the Bowen miners pretty much equally, which will likely cause a short term extra price spike for what is available at port, especially the coking coal which the Bowen Basin is very important in the global seaborne supply. Oddly, Bluff might be a positive to some degree. Quite possible there is a growing pile of Bluff PCB coal waiting for completion of to the last shipload or loads.
Just hope it isn't going to be too bad, just when Ellensfield isup and running. Dodged the last one.
BCB Price at posting:
7.5¢ Sentiment: Buy Disclosure: Held
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