Firstly I would like to say that I have recently bought in to CCC as I believe the company is under valued and is basically trading at all time lows.I was previously a shareholder and sold out before the recon.
Take some time and read what is on the following link.
CCC is currently exporting around 2mt pa and is looking to increase this to around 7mt pa which based on today's coal price would equate to around US$735,000,000pa in revenues.
If you are bullish on coal prices as I am and I believe coal will head up past US$160pt this revenue will turn into more than US$1.1b pa based on the 7mtpa.
So what is the break even? Even if you took at figure of $80pt as your cost which I feel would be high you would have a very nice gross profit coming from that revenue.
Recently an Indian group made an offer of approximately C$370m for a Canadian company that has 5/6bt in Botswana!!
CCC has a project in Botswana where independent Geo's have indicated 6/7bt. So does the share price at these levels reflect 1) Forward earning and 2) Botswana?
In my opinion the answer is no.
If Indian Co offered C$370m for 5/6BT what is 6/7bt worth? What is the forward earnings worth?
I read someone complaining about the US Funds getting cheap stock, but do you realise that deal was done 4 to 6 months ago?
Are you just annoyed because you are traders and dont take a long term view and you probably bought at 26 to 31c HOPING the the stock was going to $1-00.
This company has basically come from nothing to being what it is today in a very short period of time. The Management team are experts in their field and the Directors in my opinion are working diligently to move this company forward.
My view is buy at these levels and hold, the stock will be re-rated soon and with the European winter on its way coal demand is going to be strong.
If you have read whats on the link above you will take a longer term view on this company.
See you at the AGM next week.
Cheers
CCC Price at posting:
21.5¢ Sentiment: Buy Disclosure: Held
