Editor’s response: Thanks, though the greatness will only be confirmed if it ends up meaning something that you can profit from. Overall, my assessment is that the market is still a confused mess. We’re getting to the end of the tunnel though.

Editor’s response: Dead as a doornail. Actually, they still technically function, but effectively they’re dead.

Editor’s response: Yeah, maybe. Maybe the 2003/2007 rally was just a temporary upswing in a bigger bear market. There is a precedent for that….the 70’s was basically flat, but set up a bull market from ‘80 to 2000. Maybe it will take ten years again to ‘reset’ the clock for a rally between 2010 and 2030. I hope so anyway - we can’t afford another 10 years of flat. 

Editor’s response: Thanks. There’s probably a link to the story on the web somewhere too, if anybody wants to check it out. As you mentioned, people were basically investing in a derivitave of a derivitave, or selling the same derivative over and over again…a recipe for accelerated disaster, eventually. There’s just not enough to go around. How in the hell you can sell a security twice - or would even be willing to - is beyond me, but that’s the way it is when there’s no regulation. That’s right - CDSs aren’t regulated. Ya’ think that might be a problem?

Thanks for the note.

Editor’s response: There ya’ go. On a similar note, one thing nobody’s mentioned yet is that part of the reason the P/Es still look so low is simply that many companies and analysts haven’t had a chance to revise their forecasts yet. The current projections are pre-meltdown. Once all the adjustments are factored in over the next few weeks, the ‘expected’ price/earnings measures will creep higher, IMHO.

you mentioned word ‘value’, well here’s what best value investor Warren Buffet did
he bought into GE and Goldman, no blubbering before… and lots of after..

so here’s my advice, buy first, talk later..

good luck
alex

Editor’s response: Thanks Alex. You’re right - talk is cheap. And, you pretty much affirmed our point….you can talk about how cheap stocks are all you want, but there’s no pre-set level you should buy or not buy at. And, those are all a guess anyway. Thus, the P/E discussion is merely academic. That’s why we’ve focused more on the technicals than the fundamentals with this selloff…it’s all about timing the entry (assuming it can be successfully done).

However, we really have observed that a P/E ratio of under 10 is usually the case at the beginning of a bull market. So, we’re not going to completely toss out the concept. (We don’t have a P/E of 10 yet, so it’s a moot point so far.)

As for Warren Buffett, yeah, he bought some big stakes, but it’s easy for the Oracle of Omaha to get excited - he got a ’value’ nobody else is getting…preferred stock with a ridiculously high dividend. If I could get the same deal, I’d be buying too. Unfortunately, I have to buy the regular common stock, and hope for the best. That’s why I can’t be quite as bold as Buffett just yet.

There’s an obvious solution though - buy Berkshire shares…seriously.

Anywho, Alex is right…we can talk all we want, but nobody really knows what’s going to happen or what stocks ’should’ be worth. Sometimes you just have to put your money on the table and then figure it out (i.e. decide to keep it there) as you go along.

Clearly if you look at level two this is one on the most manipulated bb stocks and
management has a plan in place to take care of it. Patience will be rewarded on this
one.

With the credit crunch it probably is very hard to get line of credit without a long
track record so how would they be able to fund the companies heavy growth without RM?
The company is working on lines of credit now.
As the company grows revenue they will be able to support day to day operations, r/d,
advertisement expenses and buy back restricted shares.

Sad you will no longer cover the company. I have really enjoyed your commentary over
the last year. This is a 100 million dollar company in it’s infancy and i will see it
through.

Editor’s response: We’ve heard the short interest story repeatedly, but have yet to find any of the same data ourselves. Our last data shows (from multiple sources) that there are only 1.3 million shares shorted right now….practically none of the 520 million share float. Of course, most of those shares are held by insiders, so the effective float is more like 150 million. But still, that’s a relatively small amount. So, if you’ve got some other information about the Ohio-based private equity firm, I’d love to be able to review it. (You can send it via e-mail, if you’d prefer to keep it out of the public’s eye.)

That would explain a lot though…the heavy short position held by a group with lots of clout. The stock is way undervalued, and the company is an awesome investment in terms of potential. We just have to wonder when the potential will be released. A reverse split would help get them to price requirement for the AMEX (which is $3), though I don’t think they qualify for an AMEX listing just yet….it could be until the end of the fiscal year to reach the annual minimum net income of $750K. However, they appear to quailify on all other fronts.

Editorial response: Will do. Haven’t had much of a chance to update anything in the coal arene, thanks to a wild market. I’ll give it some thought today.