i dont understand y investors r so pessimistic

Hi guys, I am new here:)

I don't understand why investors are so pessimistic to the annoucement about Coal investment.

My understanding is:
The company has no debt. Instead of raising fund through debt, the business uses coal investment to increase their funding through retained earnings from the coal investment.

Yes, it may have a risk that the investment might not generate profit. However, the business does not need the money now. Investing into coal field, because we are at a poor economic time, low price is attractive, also it is more likely to generate profit in long term.

It is quite like "Assets-Liabilites matched" in the time frame. (Or maybe we can say demand-supply of money is matched for the specified period.)

Moreover, I believe if the AVX own projects are good enough, they can always find investors to raise the money if the coal investment does not generate profit.


Well...maybe I am wrong, please share your views with me:)