peter lynch coal king

I think more people will pick up on this one in the week's ahead - It has been completely missed by the market.

Altera has a current market cap of just $12.8m based on the 42m shares on issue (at 30c). However this new deal is effectively a back-door listing given they will issue 210m shares x 30c to the current owners of Jack Doolan Capital.

Not only that this $12m "minnow" is looking to raise
$20m x 30c to some incoming investors who have confidence in the package of people and assets that are being acquired

Yes, that's right - a $20m raising for a company with a current Mkt Cap almost half that AND at the price of 30c where it was trading at time of the trading halt.

I have heard the placement is ALREADY a done deal and in strong demand. Remember too...AEA did a rights issue late last year at 12c...when the stock was trading under 10c! It is tightly held, and clearly this deal has been brewing for awhile.

By the time the new stock is issued, on top of the shares being issued to Jack Doolan, AEA will have a market close to $100million.

I would be watching this one VERY CLOSELY.

Those familiar with Peter Lynch's history might find it an attractive stock to start acquiring....

From yahoo finance....

http://au.finance.yahoo.com/news/Altera-buy-Indonesian-coal-aap-1495573487.html?x=0

West Australian based coal company Altera Resources (AEA) will buy Jack Doolan Capital (JDC) and its Indonesian coal tenements for $65.1 million.

As part of the deal, founder of JDC and former Waratah Coal chief executive Peter Lynch will become chairman of the combined company, while his colleague at JDC, James Middleton, will become chief executive.

JDC plans to produce coking coal from four tenements in the Indonesian territory of Kalimantan for the Chinese and South East Asian markets.

The federal government's proposed Mining Resources Rent Tax (MRRT) has created investment uncertainty in Australia which will lead to demand elsewhere, JDC says.

AEA will pay $58.8 million in 210 million shares, which last traded at 28 cents each, and a further $6.3 million through the issuance of 21 million options at 30 cents each.

AEA shares remained steady at 28 cents after coming out of a trading halt.

JDC is a private mining and exploration company headed up by Mr Lynch.

"We are expecting this region to be an emerging force in the global coking coal market and will attract new investment with uncertainty in Australia caused by the proposed resources tax," Mr Lynch said.

"Under the terms of the acquisition, AEA will undertake a private placement to raise $20 million at a price of 30 cents per share."

The principals of JDC will join the AEA board and two AEA directors will remain until the acquisition is complete. It has been proposed that Mr Lynch would become chairman of AEA.

Mr Middleton is the proposed CEO while another colleague at JDC, Patrick Hanna, will become an executive director.

BHP Billiton's Maruwai project in central and east Kalimantan neighbour JDC's tenements.

Mr Lynch said JDC's Indonesian tenements were prospective for potential open cut/underground mining.

"Much of the world's coking coal comes from Queensland but the uncertainty associated with the resource tax means investments in new capacity is likely to freeze," Mr Lynch said.