as always on the ball. however l do find this a very conservative forecast - 3.5c eps - below my expectations and does not seem to include any new contracts or upside from Ukraine or Indonesia. Just straight line projection. Environmental alone could provide a significant boost.
also, with all their previous losses l would expect some tax relief, but they have included none.
what do you make of increased loan limit to 12 mil ? l expected they would be paying down debt and not need extra capital unless there is a need for new machinery, but this does not seem like the case.
Also they are coy about ramp up in coal shipments - not until after June 2007 ! With all the port ramp ups l find this difficult to believe - surely and extra 10% across the board would be expected in this FY?
In any case the 3.5c fully justifies a 40c sp at the least, and market has responded somewhat. As long as CPB are not able to buy on market they must continue to raise their price.
They offer a lot of clauses to protect themselves. they must be expecting CPB to go thru with fine tooth comb to cast doubt on figures, but they did say that August was a strong month, so time is on our side. LZ
CHL Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
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