I havent posted for a while but is funny to see all the "long...

I havent posted for a while but is funny to see all the "long term holders" feeling that they have been "pool cued" by RES!

If it is any consolation, the MIC (Man in Charge) is down around $2M on his play at 18c pre consolidation.

Sure he has awarded himself 3M post consolidation shares for nothing but with this market depth, he aint selling them anytime soon.

Seriously, this thing is sentiment driven atm.

If you are an investor who is looking to buy coal companies atm why would you buy RES when you can buy MCC, WHC as these are in production etc etc...

BUT if you want to make A LOT of money, then RES is your man.

This is why.

1) A 98 hole drill progam has been completed - the coal qualities, characteristics should be the same as those contained in the 739M inferred resource (IMO anyway)

2) Those results are due soon and I think the RES guys are confident of upgrading the coal resource substantially and possibly getting more coal into an "indicated" resource rather than "inferred".

3)The price of coal is imo at the low point in the cycle. When the juice starts flowing from the BO (Obama) and China's stimulation package around the end of this year, it should pick up a little BUT, remember the mining costs should not change that much as MIC was quoting $30USD per tonne at the top of the boom.

4)RES does not have any debt.
Critical in this market! Means no banker/bond holder etc can ring up and say "close down tomorrow" ala CMR/OZL etc...

In fact everything RES needs to do has been done by CZA over the last few years.

About time the MIC reinforced his coal reputation, this time in a tougher market rather than a boom market...