I agreed with you they have turn a 20million plus IPO into a 400 millions dollar project sold to a chinese group. My question is why the share price is not reflecting this 20 times plus profit, even in the middle of this commodity boom, the share price at its best is only at the 70 cents level which only 350% increase from it Initial Public Offer price of 20 cents, after the capital return of 21 cents, it even drop back to 20 cents, the cash backing afer capital return and dividend is about 46 cents per share and that is not including the 2 highly prospect that could worth hundreds of millions dollars. Putting all this into account, if the management is competent enough and doing all the right thing, the share price should not sit in this present level. Can you help to explain why?
Honestly if you ask all the people who traded this CFE share are they making money and is the return on investment enough according to all the good things that is happening to it? I think you will find most of answer is either they keep losing money trading this share or the trading profit is never justify. I am not happy about the share price is kept in this level which worth only a fraction of its true value and the management have done nothing about it. Instead I think the management quite happy that the share price to keep in this level so that they can buy more at a dirt cheap price. If you pay attention to the company anouncement, the management Tony and Tim can always managed to buy it a very low price and sell it at high price, this is the evidence that they are trading this share to make huge profit to their own advantage and at the same time they are telling all the people to buy their share every time it reach its high. This is not right! This shouldn't come out from their mouth! I know so many investor who brought this share at 70 cents level because they heard that the MD is recommending it and say it will owrth at least one dollar or more, in fact the MD and the director is off loading their share to the markets. This is totally wrong and BS!
Go back to my major concern, the company is sitting on a huge capital reserve and everything is still ok at the moment, what will happen when thing go wrong, is it go to be a repeat case of Firepower Mr Johnson with millions of dollars missing from the company? Judging from all this cowboy actions they did to the share, I really concern what will happens next? the return on investment for CFE cannot be justified for the shareholder. Investing into mining company is a risky business, there are far more failure story that success story, but when you hit a successful mining company, the return should be much high like FMG which the share price jump up thousands percent. What is share price of CFE doing, it is going nowhere and the mangement is milking the company to their full advantage? Do you still think they are doing the right thing?
I suggest you to read some post of IGC as well to get to know about those cowboy management better.
Ray
CFE Price at posting:
19.5¢ Sentiment: Hold Disclosure: Held
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