leverage to the boomingcoal sector, page-3

ferdie 101: CCI Holdings (CHL) Have been very tight lipped on quantifying cashflow or profitability going forward, which does make predicting where the price will go after the interim results very tricky. This is a company to invest in for the long term on fundamentals in the coal sector which will see large gains in the shareprice over the coming 4 or 5 years. What happens to the shareprice over the next 6 months is harder to predict as there is still a legal battle to be heard in court between members of the current board and the ex chairman in July. At present there is also the temporary lower output at BHP's Hay Point coal terminal which will be putting a dampener on present results which the board may choose to highlight. Also, the company does have issues with obtaining and retaining skilled labour to perform their growing workload, as do most companies in the booming coal sector. On balance though, the LT fundamentals are looking very strong, and the temporary ST negatives look to being resolved inside 6 months.