G'day broomy,Enjoyed your 'food for thought'.CFE is selling on...

G'day broomy,
Enjoyed your 'food for thought'.

CFE is selling on the market [39 cents x 625m shares = @$244m] for less than the cash on hand [and due]. Even the most parsimonious valuation of CFE would add several hundred million to that figure. The infrastructure rights alone at Marampa must be worth $200m. Note how Atlas Iron is taking over Aurox. Are they interested in the magnetite deposit? No way! It is all about the infrastructure rights. Iron ore is fairly common. Getting it economically to a port is the real value. Marampa has got that in spades!

I, too, believe a takeover is coming. Marampa, Pinnacle, Sappes, DMC, Corvette, Lady Loretta, Fe Ltd, Cauldron,IPO, Leichardt etc. -- the Chinese must be absolutely salivating at the possibilities. Along with their other African purchases this would be a good way to extend a middle digit to BHP and RIO!

I'm not sure about the Capital Group selling as being short sales. I think they may be cash-strapped Yanks liquidating. They are down to 4.67% or less and have most likely been dumping for the past month or so. Notice also that JP Morgan Chase BECAME Substantial Holders in early May. Hmmmmm? Whom are THEY buying for? TS topped up on the big down day [May 5th]. Smart man. I have joined him.

The only thing that puzzles me is why the smart money hasn't rushed in here buying 'till the cows come home. Usually when you can can get a buck for thirty cents the vacuum is quickly filled. I believe the Krudd Tax [which will NEVER get up] has temporarily caused this anomaly and when people wake up the move upward will take your breath away. Perhaps you and I will be the only ones with new Ferraris in the driveway!

Under a hostile takeover situation, as you suggest, I could see a 20-30 cent dividend being paid to dissuade the vultures. Even after paying for Marampa infrastructure and a full takeover of DMC there would be $ left over.

Dream on Doomdog, dream on.
PS -- my Ferrari will be red.