10 for 1 makes sense if they(?) arnt fussed about TRADEABLE VOLUME anymore and are more interested in getting the market cap going.
In the context of the large raisings for the Mashala acquisition,various debt payouts,Penumbra financing and project development, there WAS the need for the insto's and brokers who took on the raisings/issues, to have decent tradeable volumes to sell the stock into the market.
Its obvious from the sp drop over the last couple of months that they are done doing this and we have seen no public Australian market broker notes to support the stock.So Im taking the view they dont want to support it, except when flogging it off to their own clients!
The only broker notes we seem to be geting are AIM related which supports why CCC are so keen to be AIM listed.Other basic points are that large chunks of CCC have gone to the UK/Asia in the last raisings and EDF,a Euro centric commodities trader, is the main financial/offtake contributor to CCC.
I would think CCC would like to see the consolidation done some time around the Aim listing and possibly before, if they want to move the sp up to minimise dilution with both DeWitt financing and completion of the Mashala acquisition due soon.I suppose this depends on just how much issuing of equity there will be required for the above.
Whatever the case, a higher sp/less volume makes for less insto support problems, and with the UK AIM trade predominantly boutique insto supported, their job will be made that much easier in reflecting their valuations.
d.
CCC Price at posting:
61.0¢ Sentiment: Hold Disclosure: Held
