mitis, an analyst for one of the big funds went to Mozambique with a few others. They appeared more interested in complaining about one of the others on the trip than listening to what was being said. A bout of food poisoning didn't help. His main interview was with someone who left the company almost three years ago to run another company and has left his potential life's fortune on the table. He then wrote up a little report which managed to find its way around the world. I know this because three very diverse people sent it to me. It included, among other things a bagging of the "very old rail line" whilst the truth is that the new line is in fact 2/3 complete. He referred to the coal quality with no mention whatsoever of the strip ratio (near surface so not a lot of rock to go through before you get to the coal) which combined will leave their production costs very low. He referred to the depth at the port which is easily overcome by using Panamax ships (same ones that enter shallow ports in India-the destination of choice for most of the exported coal) and by transhipping to a docking facility just off the coast. In a market where every terrified fundie and many other investors are looking to sell any stock that has a little liquidity, any report that one of these dudes can quote (to justify their existence and to make it look like they've actually done some homework) will be quoted and acted upon. The Tricom situation hasn't helped at the same time with not only my holding but about 3.2 million shares held by two managers of a large London fund having been affected. That at least has now been sorted but had led to nearly 4 million shares being sold in to a nervous market for no other reason than that Tricom are incompetent. Having had it's effect, from here on that report will be nullified by others who actually concentrated on the trip and go home to do their homework. I'd be surprised if RIV doesn't see reasonably strong support within the next two weeks. At the end of the day it is extremely cheap.
ps Dacata, you're on the right track with NFE. Simply put a PE ratio of 6X with a mine life of 19 years which will undoubtedly be extended. It's not too hard to work out!
RIV Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
