I have not posted on CNX for quite a while. Presently I am not a holder [I sold everything a while back because of a love affair with another stock].
I am prompted to offer my thoughts in response to 'VBURG'.
Firstly I agree with 'Madrum's' overall assessment. Long-term the future is very bright for CNX IMO.
I have one remaining issue with the stock however. That is the unresolved 'Summa share sale' dispute. I have no way to judge the outcome of this. CNX is adamant there is no legal basis for the claim but it is still being actively pursued by the other party. If CNX lose that dispute it does involve a lot of stock in the company. I am waiting to see how this is resolved. [The dispute is a hangover from previous management and it clearly was a bad decision taken at the time by CNX to enter into that particular agreement in the first place]
That however is the only real negative, IMO. As Madrum points out, the Zhengzhou deal only has to progress, as planned, for this company to do very well indeed. [The deadline for the Shanxi deal has well and truly passed. CNX issued a 30 day notice demanding compliance. We have heard nothing. The company should have come to market with an announcement stating the outcome. It is disappointing they did not do so. However, I now assume that deal is completely dead]
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Blue sky stuff:-
As far as UCG is concerned, China is the only real game in town. They are the ones with the most pressing need for ever increasing energy, UCG is much cleaner than the viable alternatives for their electricity generation and if CNX successfully execute the Zhengzhou deal [thereby proving the robustness of UCG and the economics] the process is very likely to be adopted in many parts of China and on a grand scale. It will be CNX which will win those contracts [without doubt in my mind].
I am staggered the SP has drifted to these lows. When I sold I was convinced that, come the time I buy back in, I would have to pay more than my exit price. I watch the company closely and when my current gamble resolves itself and funds become available again CNX is on my list.
CNX Price at posting:
1.7¢ Sentiment: None Disclosure: Not Held
