Unfortunately there is not much going on in the world that is working in Conti's favour.
The main issue is a weak coal price which hasn't yet showed any signs of reversal. The trend over the past 12 months has clearly been one of decline. This has been reflected in the SP of almost every coal stock from junior explorers to major producers, many of which are close to 12 month lows.
Margins are being squeezed on current and future projects.
June 30 also provides a potential tax loss opportunity in Australia, and there wouldn't be too many holders that are actually in the black on CCCC.
All this combined with struggling European and US economies, and slowing manufacturing results out of China indicate to me that the coal sector has yet to bottom out.
Conti has also its own issues which posters here are mostly aware and I'll avoid posting out of monotony.
I'm currently struggling to find any compelling reason to buy CCC. Maybe the Colombian deal will add value, maybe it wont, only time will tell, it will all be in the detail.
For me the much hyped "10 cent party" could become a reality for all the wrong reasons.
CCC Price at posting:
13.0¢ Sentiment: None Disclosure: Held
