i have no worries

Yes I am heavily into CDS shares like most on here and yes I was amazed to see the price drop down from the high of 34 cents on the back of the announcement of “78% Increase in South African Coal
Inferred Resource” 24th July 2008. To finish today at 24.5 cents
Now the company and management have to follow rules under the Australian code of reporting of mineral resources & ore reserve and as such had to release the announcement when they did. The markets over the world took a dive today:

Market Indices
Index Value Change
All Ordinaries 5,031.00 -157.4
Dow Jones 11,349.28 -283.1
FTSE-100 5,362.30 -87.6
Hang Seng 22,578.07 -509.65
NASDAQ 2,280.11 -45.77
Nikkei 225 13,334.76 -268.55
S & P 500 1,252.54 -29.65
SPI Futures 4,980.00 -2


I doubt anyone would have been able to increase the SP today except for an exceptional announcement. What people need to remember with CDS are these facts:

1. Paul Jury has been appointed as Managing Director of Comdek Limited. Paul Jury was the founder and Managing Director of Resource Pacific Holdings Limited (ASX listed RSP). RSP successfully developed the Newpac mine, expanding it from a small bord and pillar underground mine into a large scale longwall based mine over a three year period, which involved $300m funding and completing major mine equipment and infrastructure development. The market capitalisation of RSP upon listing in 2004 was $54 million. RSP was taken over earlier this year by Xstrata at a value of approximately $1.081 million. Mr. Jury has over 20 years of direct experience in the development, operation and marketing of various open-cut and underground coal mining companies, predominantly in the export market. Prior to RSP, he was Executive Chair of Oceanic Coal Australia Limited, Finance Director of Coal Mines Australia Limited and Chief Financial Officer of Coal & Allied Industries Limited.
2. 78% increase in South African Coal Inferred Resources 24th July 2008 from 415 million tonnes to 739 million tonnes: “This is an important step forward in determining the enormous economic
potential of our deposits in this emerging world class coalfield,” said Mr. Paul
Jury, Managing Director of Comdek.
“The next step will be to commence a comprehensive exploration program of all
three deposits in this region. A program is currently being finalised to undertake
the drilling of 98 exploration holes to complete a definition of the resource in the
three areas.”

3. The three Comdek properties are on the border with Botswana and are serviced
by good quality roads. The Lisbon and Zoetfontein properties are within 30km,
and the Koert Louw Zyn Pan property is within 50km of the Grootegeluk opencast
coal mine. Immediately adjacent to that mine is the rail head which leads to the
Richards Bay Coal Terminal, the largest South African coal export port. Also
adjacent to the mine are the operating Matimba and the under-construction
Medupi coal fired power stations.

4. Eventually they will relist the company from being a Technology hardware & equipment company to a mining company surely.

5. Coal price surpasses CNY 1000 per tonne after 10 week upswings: http://steelguru.com/news/index/2008/07/16/NTUwMDI%3D/Coal_price_surpasses_CNY_1000_per_tonne_after_10_week_upswings.html

I have no problem in keeping these shares medium to long term as all the research I have done only shows a positive outlook. All anyone can do is do research as much as they can on any share they decide to buy or sell and not to listen to just a whisper on the grapevine. I am am looking forward to the next few weeks or Months ahead.