This would’ve been a lot faster if my laptop didn’t crap itself...

This would’ve been a lot faster if my laptop didn’t crap itself halfway through.

Viewer email from “Travis”
“… I need a fundamental and technical view on Condor Blanco (CDB). It’s a penny stock, however it has had huge fluctuations of late – 50% some days! And it just secured a $10m grant…”
(TRAVIS CLEARLY NEEDS TO DYOR – GRANT?!?)

Host – “That’s not one I’m overly familiar with Tim”

Tim Kelley (Montgomery Investment Management) “Umm, no its not one I’m overly familiar with either so I don’t think I can be a lot of help to you in a fundamental sense. I can see the business has been losing money in recent years, its very small and there is no broker forecasts and I cant give you any sense of valuation of this, but my good friend Mr Novac here understands a fair bit more about it than I do…”

Host “When you say it small what is the MC?”

Tim “$6m”

Host “And they just got a $10m grant? That would explain why the SP has been bouncing around!”

David Novac (Wealthwise education) “Well I should just clarify it’s actually not a grant its just a funding package, a $10m euro funding package”

Host “Its not an Eddie Obeid loan is it?”

David “No, definitely not. Look actually I went to a presentation by the CEO a couple of weeks ago in Sydney and I must admit I have to declare I have got some shares in this company, but not a lot, you have to treat it with a little bit of speculation at the moment, but I did like the outlook and the story he gave me. They have got a magnetite tailings project in Chile and the funding is going to go towards early production of that tailings project and that will bring in some nice cashflow for the company towards the end of this year. Plus they have a very good coking coal project in South Africa that is very close to infrastructure and everything else. These are the two projects I was most interested in that to me would bring cashflow for the company. Now it’s a very small cap company with a $7m market cap and they only have about $1.2m in the bank. Now obviously the funding deal will help them immensely. So the fact they are getting the funding deal shows you the level of confidence that the bankers obviously have that they can fulfil on these promises..”

Host “So the funding deal is coming from the banks?”

David “Yeah well it is from a European Bank, I dont know who exactly, the chairman just flew over there, in fact I think early this week or late last week to sign the deal for the $10m Euro funding package. It just goes to show that obviously the financiers, and I don’t know who they are, obviously have a lot of confidence in the project. But they have got some very interesting other projects, I like their gold project as well in Chile, but that is on hold at the moment, it got some excellent grades. But I think what interested the market moreso is the cashflow for the company going forward basically. And huge share turnover recently about 150m shares”

Host “No wonder the volatility”

Tim “We are disparaging sometimes of really small cap companies but I…
Host “Sorry Tim I have to cut you off we are out of time!”

(TIM WAS ABOUT TO SAY SOMETHING POSITIVE!!!)

Anyway, not overly exciting but its more the point that CDB is getting out there and is lots of radars. Time for the announcement or TH tomorrow or Monday to really keep up the momentum!!