I decided to short QRN late yesterday afternoon at $2.80 after the surprising rally, triggered by an annoucement by Wesfarmers I believe.
Given the massive flooding in Queensland has cut rail services and could affect coal output from many of the mines for months, I thought yesterdays sudden rally was a chance to open a short position.
I think reports of continued force majeures by many of the mines and the realisation that coal transportation by QRN will be significantly impacted for some time will put downward pressure on the stock.
A possible disappointing earnings report in early February could also see the stock fall dramatically as many of the new investors reassess their positions, although admittedly it could go either way.
Short for now.
Dreamcatcher
QRN Price at posting:
$2.73 Sentiment: Sell Disclosure: Held
