Forces in the global economy at large seemed to have now begun to perhaps turn against the LNC shorters - my thinking below.....
Coal and oil ticking up slowly at the moment.
Oil up 10% in a recent weeks now closing in on $90 per barrel this week after lows around $80 a few weeks ago.
Coal up 6% in a month around $57 per ton now from lows around $54.
Although I am fairly heavily loaded in LNC already with an average price now around 0.75 so long as shorting is goin in opposite direction to oil and coal price and can somehow manage to get SP down to 0.55 I will take another bite of LNC to bring my average price down some more. I still don't expect they will successfully get to 0.55 given previous lows and the LNC news released since that time but perhaps if further news is weeks or even longer away they will indeed succeed to dribble down to that level with bot trades?
If I can take the extra bite at 0.55 I will set stop loss down slightly at 0.38 (down from 0.40). Given production news and oil price momentum change I feel safe that LNC is not in any danger of collapse and UCG/GTL becomes more attractive again with higher oil prices. With coal price slowly ticking up again there is some upside once more on coal asset value. The spread of oil and coal price is quite large now (coal not rising as fast as oil) which is positive news for coal GTL technology.
In short (pardon the pun) everything seems to be heading in the right direction for LNC except SP. Good luck to our shorter friends!
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