It is vital at this stage of history to be on the right side in my opinion. While most Australians are going to get up tomorrow in total ignorance we are watching momentous times as we speak.
Europe through the power of a crisis is crushing the economic sovereignty with this supposed solution. Debt never solves debt, tyranny never solves sovereignty...
As America is an empire that is on the brink, looking at its job numbers and its fiat currency it is teetering on the edge. Australia is like Briton saying to Rome sure increase your military presence while their economy is in free-fall.
Australia in my opinion is on the wrong side of History in 2 important ways:
1/ Allowing America to increase its military's position in Australia. It insults China and entangles Australia with a murderous, lying Nation State. (I could give 50 examples of America's lying and murdering along with Official Documents!)
2/ The Carbon Tax is a ridiculous Tax that selectively shuts down the middle class and key Australian industries. The longer it exists the worse it is going to be for our country.
(These are my opinions only meant to offend no one. DYOR)
We are not experiencing the suffering that is manifested around the world because of the insulation of China. China loves our stable government and our traditional non-interference and moralizing about China.
China has 60 + riots every year because of corruption and change. It is easy to write history books and vilify China but anyone with any sense of Colonial Powers know all of our prosperity and wealth now was bought off of slavery and Empire. Now the corruption is eating us inside out. For example England's Debt is 1000 % of GDP!
America owes at least as we speak 1 Trillion Dollars!
So Australia is going into a perfect storm of Investment because it is a safe-harbor Nation. Not only does it export Coal Australia's companies successfully build assets over seas. Especially in the Coal Industry.
Hao Xiangbin; China Coal Industry Association indicated that China is considering lowering 2 important Burdens:
1/ Decrease their Value Added Tax 2/ Port Charges on Imported Coal
"The Chinese government has been studying the adjustments of VAT and port charges on coal imports. China's net coal imports will remain high this year, likely hitting 150 million metric tons (mt) and are expected to increase in 2012 and 2013. Coal demand in the second half will be higher than in the first half, and its total coal demand for 2011 will reach 3.73 billion mt, up by 9.7% year-on-year. China's raw coal output reached 1.77 billion mt in the first half of this year representing a year-on-year increase of 13% and its coal sales volume reached 1.71 billion mt during the period, 14% more than a year ago." - Hao Xiangbin
http://www.chinacoal.org.cn/ (Google will Translate)
Because of these very unsettling times the Industries we invest in are very critical in my opinion. Being Contrary tends to prosper in all economic ages. The attack on Coal is occurring while its industry is in a huge boom! This also is occurring in Gold!
The most import market report to educate us as investors looks at a industry Globally. For me the 'Medium-Term Coal Market Report 2011' is the report that will help to understand why Coal is a safe-harbor for our capital.
This report shows Coal's demand is going to grow 600,000 t/d over the next 5 years a good article came out today in the Mining Weekly by Terence Cramer: http://www.miningweekly.com/article/coal-demand-to-grow-by-600-000-td-over-next-five-years-iea-warns-2011-12-14
In my book 2012 is going to be the year of Coal! Energy per capita is key for China. In the last great depression Coal dropped as consumption dropped in the West. Now as the west contracts China and India are only going to be blessed by Investment.
Early days for ROB does not mean risk. In fact in my opinion buying with the uptrend and growth of assets is not a risk. More importantly ROB's low market cap, CR and Management mean right now down in the Basement (Under 3c) is the perfect place to protect your capital with growth. Money sitting around evaporates. Capturing growth is key and capturing the youthful energy of these companies protects us from loss if we are careful.
China is no different from Japan in that it is growing while also growing with the cancer of corruption. China is different from Japan for many important economic reasons but mid-term China is dominant.
It is no surprise that companies focusing on Coal have enormous potential. If the rumor of more licenses is true; then ROB is looking at a very strong uptrend. Uptrends are not without consolidations and pullbacks but I see a sustained Investment here as a strong market spec just in my opinion.
The market seems to know well ahead of time that something is up! What I am watching for is a buy up by the MD! CR is often a time for it at a guess...
If you like what I've said let me know by voting!
PS - This research is posted for everyone to take which is useful and discard the rest. Everything could be wrong here so DYOR!
Kind Regards
ROB Price at posting:
2.2¢ Sentiment: LT Buy Disclosure: Held