its over, page-61

Do you really think that statement is fair Baglimit?

If anyone hasnt lost more than Mihal Id like to see who it might be.But then thats the risk one takes in using a large amount of faith in assessing a companies management/performance.Having a longer term investment strategy one can fall into the trap of PROMOTING(as distinct from ramping which is a term regularly misused here on HC)such a company without utilising some basic lower parameters to indicate when the investment is becoming too risky.

There have been many many posts as of late that have plainly explained why an investment in CCC is questionable not the least of which for me has been the unexplained evaporation of funds intended for settling particular deals that have not beeb finalised.

But getting back to lower parameters and the learning process in such a disastrous investment for many here,including myself.

Personally one has to be honest with ones self and if not using a basic stop-loss strategy of say 15-20%, which would probably be around ball-park for a longer term investing strategy,then one should at the very least be linking some kind of sell signal to the leveraged commodity the company is involved in.

For me that finally came when the RBI price dropped below $90/t which appeared to be AROUND the indicative cost of productin of the two producing mines.The other warning sign for me here was that the company appeared to continue the buy-in of coal in order to boost the volume of export thermal which MUST have had an effect on bottom line costs and ended up lowering the potential margins unless the export production should had reached what it should have been as promoted in the first place.

The huge problem for CCC has come as the export price has tumbled below $90/t and turned these fractured assets into liabilities.For me this business model was only ever going to be sustainable with this commodities price well above $90/t and that was where I drew the line in the sand for my investment.When such a company is so strongly leveraged to one commodity then its only logical to keep a very close eye on that commodities fundamentals right from the companies costs of production through to various buying regions stockpiles/price behaviour.At some stage this should overide the FAITH investment factor.

This is the second time I have personally made the mistake of using too much faith in believeing what the management of such a company is stating to market.The major warning sign for me with CCC was the lack of TRANSPARENT qtrly financials.At first there was the belief that these consultant fees were a one-off but when they appeared again things started to looked unsustainable if these fees were to continue espc with the RBI price plummeting as it did.

As far as defending Mihal,as I am firmly of the opinion that the only thing Mihal is guilty of is, like me and many others here,having too much faith in what management has been stating to market and communicating by various other means,rather than being more secptical on promises undelivered.

And on this note this is where I now draw the line for the faith factor in such investing.If a company is not backing up purported deals to market within a stated timeframe then its time to seriously reassess that investment.

As Pisces has said ultimately we only have ourselves to blame.But then thats a difficult pill to swallow for many here as they have coninued to BELIEVE what this company has been presenting to market which imo has been skewed to the overtly positive on many occasions espc in the last year or so.

I will be very skepitical from here on in if any company director is disseminating info via channels other than by market annmnts.I started to become wary of such info from CCC around a year ago when such info was not being backed by solid company annmnts and then deals.

The unfortunate thing about this end of the investment market is that there is nearly always a large faith factor required in many cases and that is frequently backed up with either non-completion of said deals or a massive extension to the completion timeline of the deal which adds huge risk to the investment.

From my pov(and the investment learning process) its time to keep a much more wary eye on the performance of these companies and shift the faith factor out of the equation to a much larger degree.

d.