CCI Holdings is expecting 5 years of strong growth on the back of growing global export volumes of coal. Despite the strong outlook, the stock has experienced a series of large accounting writedowns before their first profitable report in about three years which came out early this month. the stock is trading at a paltry P/E of 8.9, less than half the multiple other mining service stocks such as TSE, UGL and WOR.
The company last year had an operating cashflow of 2M, yet they just posted a cashflow of 3.2M for the first 6 months of this year. A return to dividends is likely when the company reports full year results in August.
This is a growth stock at an underpriced level.....the sort of combination rarely available.
CHL Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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