Hi guys, made a few notes on this company from there...

Hi guys, made a few notes on this company from there announcements. And thought I'd post them... Openned my eyes a little...


CNH Long Term
2008 EPS = $4.45 with 300mil shares. Nickel pig iron only.
Running at 100% Capacity, peak market period Pre Olympics.

2009 EPS = -$0.99 GFC - Fee reductions to meet GFC demand or lack thereof, capacity reductions and ($24.5Mil + 2Mil Interest) costs involved in upgrading facilities to include Merchant Pig Iron.

2010 EPS = $ ?.?? Running at 100% capacity as of Jan 2010. Fees ???, Markets recovering in demand and price.

2010 New allotment of (170Mil shares 20Mil Options) to lenders for $52Mil. Now approx 500Mil shares on register.. Allotment transaction at $0.30 per share.

Financial Gearing from 71% to 2%

Not sure how this gearing works but I guess
If the loan $54Mil = 71% against company value then company value is approx $76Mil.. Notes in last Ann. say $79Mil undiluted to- $87Mil Fully diluted. Something like that.

Asset value per share Pre loan conversion = 7.7c per share,
after loan conversion = 17.3c Fully diluted.

Liquidity. Lenders hold 67% of shares. There are 4 lenders.
Who needs a top twenty list when 67% is held by the top 4. ???

Pros.
China steel industry / growth in china / company back to 100% capacity / additional merchant pig iron facilities / very low gearing

Risks.
Stainless steel industry. Resource influences/ ???? Need to find more.

General comments.
If EPS head back to 2008 figures now that the Mill is recently at 100% and the market for stainless steel products keeps recovering and holds then this could become a $5.00 company on the information in the March 2010 Quarter and progress considerably further depending on market conditions and production success..No wonder the lenders were happy to pay 30c per share
My spare change will be accumulating here for a while until there is a market response.

Im not a professional in any way shape or form. The above general comment is my interpretation of the activities and figures I found in the CNH annual and the recent announcements. DYOR and if you find something dodgey please post it here. Ill do the same.