CCC 0.00% 0.1¢ continental coal limited

keep your eyes on the bigger picture, page-24

  1. 1,966 Posts.
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    "I dont care if there is 'better' gains elsewhere. I understand the CCC business and the commodity Im dealing with, hence I understand that CCC is a LOW RISK stock for a micro cap, because the BUSINESS is GROWING but the share price is stagnant. Therefore the mismatch of price to value is actually GROWING, not shrinking."

    Septa - absolutely brilliant insight imho.

    This is value investing, not swing trading or day trading,
    This is a calculated highly probable long term wealth building activity, not taking a wild risk.
    This is investing in a business, not milking a share price.

    I know we all have different approaches to investing, but Septa's observation that the gap between the value this business in generating and the sp is widening is significant.

    An anoalogy -
    If someone bought your local fish and chip shop a year ago for 100k, and it is now making double the profit it was, you would think it a steal if it went on the market for 100k, or even 120k. Now consider that when the guy bought the fish and chip shop, it was as a result of a fire that wiped out the previous owner, and he built the business up, improved the plant and equipment and broadened his customer base, you would consider 100k would be a ludicrous price to pay. 200k would be a ludicrous price to pay - maybe 500k would be still cheap. There would still be some uncertainty about the business until the fish and chip shop could demonstrate it's productivity on a longer term basis. CCC is a business on a bigger scale - only we sell coal, not fish and chips! I know, the analogy breaks down a several points, but the basic principal that shares are simply buying a piece of a business is what I'm getting at. If the business is good and making money, the price will catch up with its true value eventually - Value investing 101.

    So, we are all being lied to with regard to CCC income and plans for expansion (including funding), or the sp will find true value.
 
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Currently unlisted public company.

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