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The Company is leveraging a vertically integrated, coal-based platform to deliver combined energy, environmental and economic solutions, producing clean, efficient and affordable energy.
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spacebased (79.33) Submitted: 9/19/06 1:17 AM : Start Price: $11.00 EEE Score: -66.00
KFX has been unfairly punished by rumor and overly aggressive negative reading of a minor operationial SNAFU. There is a huge short position in this stock that will take sweeks to work off at current trading volumes. As the company contiinues to deliver their product and tests continue to meet and/or exceed expectations, look for the short squeeze to propel KFX significantly higher.
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jericson (99.59) Submitted: 9/20/06 9:09 PM
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I don't know if I'd call the snafu "minor". The whole point of "K-Fuel" is that it will make Powder River Basin coal more profitable to transport by drying it out without the risk of dust or instability. The followup KFx press release points to two problems with this test: "fugitive dust" and "elevated heat content". The corrective action taken was to spray the coal with water--in effect reversing the drying out process. Also notice: "The plant staff tested the shipment of K-Fuel(TM) Refined Coal and reported an improvement to the power de-rating that occurs in boilers when burning raw Powder River Basin Coals." That is not a resounding vote of confidence.
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spacebased (79.33) Submitted: 9/22/06 3:47 PM
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Good points. I could be overly optimistic about it. I thought that the short position was a bit overdone, especially at these levels. Thanks for your comments.
TMFBent (< 20) Submitted: 9/22/06 11:52 PM
Good rule of thumb: hopin' for a short squeeze is not an investment idea. Short squeezes are rare, and most are short-lived. There's a reason companies like this one are so heavily shorted. Usually, it's because they richly deserve it.
spacebased (79.33) Submitted: 10/06/06 12:00 AM
Disagree. High short positions are a sign of the herd. I like to pick'em when they're low.
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