Optimism... Here is another way of looking at the whole...

Optimism...

Here is another way of looking at the whole deal...
MC= $49Mil
If start up costs = $54Mil +

At $52Mil, the Financiers are effectively buying half of the company. By paying a 100% premium on the current share price they effectively avoid dilution consequences and the general market trend of an SP falling to say a Cap Raising's discount level (see ORD)....This is like a reverse Cap Raising.
Have they just bought half of the company for nearly the same money as what it cost to build the company??...I don't think its that simple but it sounds good.

I'm still a pup when it comes to the stock market and normally my strategy is to research a company and then buy cautiously if I'm satisfied with its fundamentals. During the biotech frenzy of last week I managed to make gains that I rarely see and in my excitement I became careless and moved away from my normal strategy to spread more money across the market than usual and I did it at a rapid pace on announcements and second hand news. CNH was one of those targets.
Bad timing for the markets to take a turn for the worse over night.. Huh? such is life... Nonetheless my recovery was simple, scale back on higher risk companies... The research began. CNH is IMHO a high growth LT hold or accumulating sentiment. Its financial and activity strategy through the GFC was solid.
Its relations to its shareholders seem very well in tact, which is quite rare IMO.

The company has just recently achieved 100% capacity at its mill and quarterly costs have been minimized. The recent loss announcement was quite an achievement when comparing the previous loss and considering the mill had yet to achieve 100% capacity in that period.

In short, these guys, at least to the best of my judgement are very capable of bringing this company up to the standard that they ventured in to achieve prior to the GFC... The way that these guys respond to the market environment CNH could become a blue chip before the end of the year.

Just my Op.

From 71% gearing down to 2% in one stroke is phenomenal for a 15c stock and it gives a better asset value per share through the dilution.

Sorry for the long post.

Cheers