Hillsborough Resources (HLB)

[rrufff]

This has been starting to move upwards off the recent bottom when I started this board. I was lucky enough to accumulate down in the US .90 range.

Recently, Hesperiian Capital, a Canadian fund, purchased over 10% and there was a favorable mention in the National Post, including the listing of HLB as a top pick.

I'd urge anyone interested in the coal area to read the National Post article

http://www.canada.com/nationalpost/financialpost/story.html?id=40d1dd98-0b59-4f29-9a66-a7d82ff26218&....

It gives an insight on how temporary factors can sway the market. The price of HLB and other junior coal companies went down because of a shortage of tires used on trucks hauling coal and then another "rationale" was that steel producers had over-ordered.

It seems to me that much of this analysis created an opportunity in that the price of energy delivered by coal is a fraction of what it costs to deliver by natural gas and demand won't go down in the big picture any time soon. As technology improves and funds go into clean coal production, some of the enviormental issues may be less burdensome.

The Western Canadian coal business has gotten so bad it's starting to look good.

At least, that's what you could conclude after reading a report by Gary Lampard, analyst with Canaccord Capital Corp. Mr. Lampard initiated coverage of five junior Western Canadian coal companies last week, with NEMI Northern Energy and Mining Inc. and Hillsborough Resources Ltd. as his top picks.