Yes, Star-Trader. I totally agree with you.

This is the reason why I didn't recommend others to short Straits Asia today.

$2.18 is a key level to watch.

Beside the reason I stated before, I also short Straits Asia on technical analysis.

Now trading at $2.23.

1. There are a strong Sell down Pressure since beginning of this week. Continuously 4 Black Candles.

2. Parabolic SAR shows that this counter turn Bearish yesterday.

3. MACD lines and Stochastic lines all crossed and moving down.

4. Although Price is close to its support level of $2.18, but MACD and Stochastic shows there are more downslide.

5. The sudden Jump on 13 Sep 2010 is totally unsupported by any news. There is no reason for Straits Asia to jump $0.11 on that day. This make me believe that this is a P&D by the BBs.

6. STI is pretty high now, I'm expecting STI to fall very soon and Straits Asia is one of the first to fall.

This is my personal analysis. You don't take it too seriously.

Good luck with your investing.

Straits Asia is an Okay company.

The main reason why I choose this counter to short is its Business.

Straits Asia Business is Coal Mining, they mine and provide Coal to Power Generators in Indonesia.

Because Coal Mining is dangerous and Coal Burning pollutes the environment, Coal Burning Power Generators are slowly replaced by alternative power source.

As time goes by, the demand for Coal would decrease. However this is a long process, so in the short-term, there is no much effect on their Business. Long-term wise, their business would decrease gradually.

Unless they change their business model, long-term investors should avoid this counter. As a short-term traders, I would play on this weakness and go short.

Just my personal opinion. Don't have to take it too seriously.

Good luck.