An Investment Lesson From 2 Idiots Losing money on an investment is no fun. It happens to everyone. Smart people learn from their mistakes and hopefully don't make the same mistake again and again. So look at what these two fools SeanJ and Eigen are doing and don't make the same mistakes. These two jokers refuse to accept the reality that Cline has been a poor investment. What the heck does posting satellite images of an unimpressive pile of coal on the side of a road prove? Nobody said Cline wasn't producing any coal. The issue is that the macro conditions for met coal have gotten worse especially for mediocre met coal. Established producers are cutting back on production.I posted my thoughts on Cline the other day so I suggest you red my earlier posts.
What SeanJ and Eigen are trying to do is convince themselves that somehow Cline is a good investment. Meanwhile the stock has dropped 50% from the beginning of March. The investment lesson is that these two guys are guilty of Confirmation Bias where you look for information that confirms your beliefs. Like SeanJ posting pictures of coal and then having Eigen pat him on the back for being a great detective. The bigger questions are what is their cost structure going to be like? When will the macro environment improve? How much of a discount will these guys have to offer to get someone to buy their coal? Future dilution from equity issues.
I hate to be a jerk but I need to embarrass Eigen and Seanj so they won't make stupid investment mistakes in the future. No need to thank me.