I've held CCC for a few months now but have only this weekend taken a concerted interest in posting on the stock. To be blunt I find the forum to be littered with useless chatter about a tick up or a tick down in the share price. At the end of the day, when this is trading multiple times the current price, these 0.1c movements won't mean a thing.
So if you haven't picked it up yet, I'm a glass half full person, and while the majority of HC posters are deliberating over why the price has fallen from 8cents to 6cents, I've been lining up some funds to make the most of these cheap prices. We all know that CCC could be valued at 20+cents in 12 months, so why not make the most of the situation instead of pointing the finger at reasons why the price has fallen. You can call it manipulation, volume absorption, time absorption, whatever, but there is no fundamental reason for CCC to have a market cap of just $220M at the moment given what it is achieving.
Fact is, CCC is one of the cheapest coal companies going around at the moment, and it also has one of the biggest coal tenaments of all ASX listed companies, that being the respectives areas in Botswana.
The key to investing is finding a well run company, and buying them at prices cheaper than what the company should be valued at. CCC is a prime opportunity to test out this theory. Right now, on it's current fundamentals, the stock should be trading around 10cents in my opinion. The fact that it is in the 6s is nigh on a joke. But instead of complaining about it, I'm putting my money where my mouth is and loading up. In my opinion this will have a market value of at least $650M (20c/share) by December next year. I'm so confident with this that I'm calling it a 'sure-thing' 3-bagger in a year from these prices, and a safe one at that!
There is a reason why this stock is the most discussed on HotCopper. ContiCoal is going places, that is for sure. While the market sorts itself out and gains it's sanity back, there is a real abritrage opportunity here. You could do far worse than load up at these prices and get on board for what 2011 will hold, I know that's what I'm doing!
Exploit the cheap prices instead of worrying about them. It will do yo
CCC Price at posting:
67.0¢ Sentiment: Buy Disclosure: Held