CDU 0.00% 23.5¢ cudeco limited

trading halt, page-34

  1. 1,843 Posts.
    lightbulb Created with Sketch. 490
    As it seems we are allowed again to take stabs in the dark as to what may appear in the next few days I'll start. Lets go from worst to best. Please note that these options and comments are my opinions only...

    Option 1 75 million shares issued at $1.50. What a disaster and not even possible with FIRB I'd think. Grade F and share dips below $1.

    Option 2 50 million shares at $2. Still not great but as long as that's it the company survives. Doubt even this many could be issued but there's always a way if it's a big enough deal. Grade D- and we stay in this trading range forever.

    Option 3 20 odd million shares issued at $1.90. This gets the company into 2014 but most think there would need to be one more injection of cash. Too much doubt still left on the table for me. Grade C- and the sp stays under $2 until the first numbers from mining are out. Sigh......IMHO this would be the bookies odds on favourite. Not mine though.

    Option 4 25 million shares at $1.75 and loan of $75 million at 12.5%. Nothing too deadly here really but it couldn't be said that this deal would have been difficult to get. Grade B and $2.50 - $3 share price seems fair moving into 2014.

    Option 5 $125 loan or draw down facility at 12.5%. Obviously a great result but the Chinese have lots to lose if nothing happens in 2014. Heck what do you reckon their share value (in CDU) will increase if funding is done and dusted now and they also get the remaining 40% off take on top of that?? An A+ from me on this and the share price could very well get back to where we were a few months ago (and quick!!).

    Well there you have it. By the way anyone making financial decisions based on anything I've ever written or will write in the future needs to get professional help.
 
watchlist Created with Sketch. Add CDU (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.