May 21

Written by: Beachtrader
21/05/2008 10:33 PM

Its taking me some time getting used to finding my way around these things, I have even looked at other Blogs on other sites and I must say I am no wiser. Whats new!!! Somebody asked for advice the other day on whether to hold or fold on MCC. I think it was to arouse comment. With the announcement today of the purchase of 14.9% of MCC by "Arcelormittal" the worlds largest steel maker (Indian owned I believe) who wants to tie up coal supply for some or one of their mills. Its anyones guess as to what to do. Or is it? I wonder if the gap of $1.55 on 24/4/08 may have been some sort of insider reaction to the news of an offer to come. Whether the 23m. shares that went through yesterday and the 14.5m. shares that went through today constituted the transaction which on my reckoning required a sale of approx. 32m. and the report I read said the shares were $20 that were purchased. The close today was $19.86. There was a gap today of $1.20. So if you had the good oil (fundamental info ) you could have taken part in the process, by trading. I nor anybody I know has that sort of info. So we have to rely on Technical analysis. Its easy to see in hindsight all we had to do is buy the breaking of the high of the low of 30/4/08 and hang on. Knowing that you might get caught up at the $20.00 mark with having passed through the minor level $18.00.

How do we get attracted to MCC in the first place, unless you are watching coal stocks, we may have had a scan search for breakouts or gaps or MA crossovers ( I am thinking aloud here, I didnt do any of these things ) which could have aroused our interest to put us on the right side of the big movers. What are your thoughts ????

Regards,

Brian

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