Compressed value: RBO Restating the Bleeding Obvious: at the current market cap. of $38.77m., the compressed value within CCC is approaching the point where compression (of the SP) becomes unstable, which is inevitably followed by an explosive expansionary phase as the asset value is recognized by others to be many times the current market cap. The replacement costs/start-up costs on a brown field site (with all the delays in permits licenses, infrastructure, finance and other African costs) of a venture like CCC, which is/approaching a cash flow positive and profitable position is many times its current market cap. With substantial hedging in place along with, rail and port facilities, the future is bright. Consider this: A 20% raid on the company would only cost about $8m. which is likely to be followed by a low-ball offer for the entire company. At this SP the financing of a takeover is close to being self funding. Buying a deeply discounted distressed asset (as the downrampers on HC would have you believe) at the bottom of the cycle, self funded by its own profitability is the way to fortune. Be assured that at this SP CCC will be taken over, in the short term this may be the only way to retrieve some value however the value over the next decade (as Aus. Coal becomes too expensive to mine) is extremely promising. The 20% bite will be swift and surgical leaving a trail of burnt shorters. Don’t give CCC away, now’s the time to load-up.
XanaX
CCC Price at posting:
8.7¢ Sentiment: Buy Disclosure: Held
