re-rating, page-6

It sounds good to me too. I've re-read some of the previous releases, in the context of the local radio broadcasts from Cobar in the last two weeks. Interview with Cobar Mayor, and Trevor Shard.

The company has made no secret that it is seeking debt finance. The company officers have good credentials and history. The project is genuine, the price of silver is still in a strong uptrend. The company has the 19.9% support of a major holder with a good investment history, who is already making a lot of money from the project.

What can go wrong? A sudden severe retraction in the silver price is the obvious one, but also any sale of the 19.8% holding would need to be shrewdly handled. Both seem unlikely, given that the trend is well established and presumbaly the big holder is on to a good thing.

I am quite happy to see that CCU is not exactly on the lips of every trader. That means that a phase of excitment may be yet to come. All speculation of course, but my money is where my mouth with no plans to sell at all. Only a tanking would do that. No target.

The ultimate owner of the 19.8% stake is Prajogo Pangestu
who has some very big and powerful friends indeed. On the Forbes Indonesian rich list. His son appears to be in the process of taking over the company. The son Pangestu Agus graduated from Boston College, the United States in the field of Economics and Business Administration in 1994. He started his work career in 1993 at the Linkage Human Resources Management.

He then worked at Merrill Lynch, in the United States as a financial analyst in 1995 before joining his parents owned company Barito Pacific in July 1997. Agus began appointed as Director of the Barito since June 1998. In the nineties, Barito was the biggest company on the Jakarta Stock Exchange.

The more research I've done on this, the more convinced I am that it is a very good thing. But I am mindful that at some point either the holding will be sold, or added to. Either way, it probably does not matter. CCU is ta stage now where I suspect a 19.8% holding on the mraket would find an eager buyer.