its more likely to head towards $1 rather than retrace to $0.55...

its more likely to head towards $1 rather than retrace to $0.55 imo.

1. Equal to ZERO country risk thanks to the location

2. Huge resources worth around $150 billion

3. EER will be valued @$2.2 at an average EV of $0.30 per tonne of Inferred resource

4. Resource upgrade is due within 7 trading days.

5. EER would be double to $4.4 if coal resource upgrade to indicated.

6. Noble Group holds 30.48% of total shares.

7. Tight share registry - top 20 hold around 80% shares.

8. Only around 33m shares available to trade.

9. 17m shares have been traded in last 5 trading days with an weighted average of $0.57.

10. Long term demand for coal is increasingly positive after Japan nuclear crisis.

11. Indian GVK wanna acquire Gina Rinehart Alpha Coal and Kevins Corner mine projects in Central Qeensland for $8 billion.

12. Noble Group would take over EER or fund the development.
Noble group had a revenue of $56,696m and a profit before interest and tax of $1,029m for the 2010 year.

13. Another Noble group invested asx coal explorer AKM, holding 8.6% of the company. Fully diluted is 5.5% holdings.
AKM has been climbed from $0.19 to $1.10, it's MC increased from $50 to current $500m (fully diluted $741m)

14. BND is more comparable to EER.
BND has 1.483b tons of coal, its MC is around $700m,
EER has 1.2b tons of coal, it's MC is around $98m.

I strongly believe $1 will be easily arrived and sp won't stop climbing.