mmm...not a big fan of mining companies - but here is what I...

mmm...not a big fan of mining companies - but here is what I think:

1. Farallon has good reputation as Hedge Fund, but if they splurge $600 mil on WHC, that is merely 2.8% of their 21 billions asset. They can lose it all and not lose any sleep over it.

2. They invest for 4-5 years term. If I want to invest 3% of my money for 5 years; that will be like $10.

3. The payoff depends on China's demand and coal price. Opinions are divided on this matter.

So it begs the question of whether 40% premium is a valid "anchor" for the pricing.