Look at who they appointed to the board, this guy is a nobody....director of PUN, it is a penny dreadful, we need guys that can build and run a coal mine, not a guy that sits on the board of ASX Co. and doesn't contribute. That is why the sell side is building, it is going nowhere, fast...
I have to disagree with you g-money. The problem with Atrum has never been technical competence - the company has had numerous engineers and mining specialists on it's board and management teams over the past few years and they have been unable to "build and run a coal mine". The main issues, as far as I see it, have been corporate governance, financial planning and business development. These are the areas that need to be improved for this company to be successful and I believe the recent appointment of Craig Burton (and his large personal investment in the business) was the first step on the way to a more professionally run company.
Furthermore, a quick glance at Mr Jardine's CV shows that he previously worked at Argonaut Partners in Perth, so presumably he has been handpicked by Craig Burton and Rod Jones. I'm willing to wager that these two guys are pretty incentivised to put together the right board, given that they invested a combined $13mn in the business just 2 months ago.
What I'm most fascinated by though g-money is your comment regarding the "sell side building, it is going nowhere fast"...... For the first time ever, the company is on the precipice of generating revenue, with first sales from the JV in Pennsylvania due by end of first quarter. Far from going nowhere fast, I'd say the business is finally progressing from an explorer to a bona fide producer and marketer of anthracite. Couple that with a new board that is actually invested in the business (in case you didn't notice, NONE of the previous board members had bought a single share - Mr Jardine owns 100,000 shares, so at least he has shown a genuine interest in the business and that is before being a board member, I expect he will continue to buy in coming months/years as the company progresses) and I am more excited than ever about the possibilities...... And yet for some reason people are selling stock at 48c. What I really want to know is why did these people buy the stock in the first place? The business is closer than ever to generating revenue and progressing the development of Groundhog North, coal prices are at multi-year highs, we have a US president who is openly pro-growth and pro-fossil fuels - the conditions have not been better for 5 or 6 years yet people who bought the stock previously are now selling it at the lows.
Maybe g-money can explain this to me. What could people have possibly seen or expected to compel them to buy it at 70c, 80c, 90c or whatever it was a few months ago, but now they think it's a sell at almost half that price? So in other words they think the value of the business has more than halved and now represents a sell, despite everything being pretty much the same as it was, only now coal prices are higher, the business is closer to production and there is a pro-growth president in the White House..... And this is after two very wealthy and experienced investors have invested money at a price ABOVE the current level.
ATU Price at posting:
48.5¢ Sentiment: Buy Disclosure: Held
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