i agree. this sort of stuff just makes the stock cheap and i...

i agree. this sort of stuff just makes the stock cheap and i guess it will drop more as the sheep funds force the price down. every time it drops like this, it bounces hard and i would expect the same again at some point. I am cashed up and waiting for the turn. it usually trades via computer generated buy and sell orders, so its not always easy to get volume quickly when it does turn and hence the big runs. hopefully someone is shorting the stock. its very hard to guess where the bottom of any stock is so one has to pick a point and start buying. The stock hit $6.80 the last time the market destroyed itself, so maybe down there is possible. CVRD is next door and willing to spend nearly $2b developing the mine. The main rail link is being re build by an Indian group and TATA steel have handed over $100m in cash for a small slice of the leases. We get their expertise with that as well. its also worth remembering that the biggest SA power company entered into a deal with riversdale about 1 year ago. Thats about them building a power station and using riversdales coal as feed stock. Riversdale would get some of the upside in that power deal as well. There wont be any shortages of takers for the power as i see it.
I think we are seeing the sorts of things massive projects like this face. The management are some of the best in the mining business with their expertise based in coal mining. I am still a big believer in the fundamentals of this group considering that they have the money to put the mine into production. They raised that cash at $9.30.At the end of the day, management are the key and riversdale have that in spades. The short term weakness in the stock will be an opportunity for those who understand the project. The cheaper it becomes, the more wide open the stock gets to predators. The near term price and market action is an unknown and like FMG, we can expect some doubting Thomas's to pop up every now and then. I went on Google earth recently and you can see one of the largest rivers flow right through the middle of the leases. Riversdale may have the option of sending the coal down the river for nicks as opposed to using a rail link. That would mean the infrastructure costs and time table would drop through the floor if that could work. That sort of system is used all over the US to move large tonnages cheaply. I dont know if that option is open to the company, but it looks an obvious option. I have seen photos of the river on the net and it seems like its plenty large enough to work shallow barges.dyor.