forget about the size of the coal assets (those lnc is no selling).
LNC already has more coal than it can handle. the issue is commercialisation. when, how and where is the money going to come from? that is what the market is most concerned with.
i assume that LNC has put up additional assets up for sale because teresa wont fetch 1.5billion. if it gets half that amount, it will have cash backing almost equal to its market cap and you get the rest free. not a bad deal eh?!
all in all, they should fetch 1bill from all of their asset sales, which leaves them with a nice kitty to build the production facility (cost of 900mill?). got to be careful with budget overruns though.
all in all, LNC is a great story unfolding but it will take 2 years to build the production facility and there is bound to be alot of fluctuation in its shareprice in that time. it could trade in a range or the market might begin to price in the potential. in the case of that latter, this could be a climber like FMG was in the lead up to its production coming on line (though unlikely to go as high in dollar terms).
LNC Price at posting:
$1.77 Sentiment: None Disclosure: Not Held
