clr - roadshow wrap

Carabella Resources: Key Points

* Coking Coal in Bowen Basin. Coking coal attracts a premium price and is structurally tight. It is geologically scarce and is used in the steelmaking process ? Chinese and Indians are screaming out for supply as evidenced by recent takeovers/attempted takeovers in the space ? Macarthur Coal, Whitehaven Coal, Felix Resources, Massey Energy (US based) Centennial Coal, FirstCoal (Canadian) Linc Energy (tenement sale to Indians) and Syntech (sold to China?s Yanzhou Coal just this week) are a few names that spring to mind that have been bid for/swallowed up recently. Takeover premiums typically are in the range of ~30% to the last prevailing share price.

* Currently on Day 4 of their east coast of Australia Roadshow. Will likely be with the big swingers in Syd/Melb today

* The significance of an Investor Roadshow on a small company?s share price should not be underestimated ? for example, Sandfire Resources undertook a 'Roadshow'/broker/fund manager site tour earlier this week and the share price rose ~6.5% on that day despite the overall market falling ~1.5%

* CLR been attracting plenty of press this week re: looming takeover offers. Where there is smoke, there is often fire. CLR have received a number of informal offers and have appointed UBS as their takeover defence adviser. Before they listed late last yr various companies had passed cheques across their desk to stop them. They are just waiting for the right price and have a global hedge fund as a substantial holder (Helmsec Capital) who are pushing management hard to extract more value (hence the Roadshow?)

* There are next to no Australian based pure coking coal plays left on the ASX aside from Bathurst Resources (which mines in NZ but is listed on ASX)

* Compared to Bathurst Resources, Carabella has a market cap of ~$200mil vs. Bathurst at ~$750mil. Both company?s have no debt and are coming into production in 2015 (will get swallowed up before then though, in my opinion). Both companies? are into coking coal. CLR expects 2.5mil tonnes of production in 2015, vs. BTU expectation of 2mil tonnes in 2015. So why the disparity in market caps? I believe this is because CLR is less known to the investment community (only listed late last year), although this will change very soon in my opinion(given AFR press, this weeks roadshow).

Who will the lucky winner be for Carabella's prized asset? Guesses? I'll stick with Adani of India.
This stock will rear its head out of the woodwork very, very soon.

DYOR.