I own TGR, but follow CSS and HUO on HC as they are are in the same sector.
This sector is high risk, and there have been multiple stock market failures (TGR went into admin many years ago).
Why do I say it is high risk?
1. It is a commodity product, where pricing is determined by global supply and demand, so companies, to survive, need to be in the 1st or 2nd quartile of the cost curve.
2. External events (weather or disease) can decimate the business (more risky than mining)
3. There is a long lead time from eggs to salable product (mining you dig it up and sell it - much shorter and so less risk)
4. Like mining, it is very capital intensive.
I have been reading the qtly cash flow reports and CSS has a current business model that means it will go broke. Will the capital raising solve this issue? Shareholders, you will need to do the modelling to reach an answer on that.
HT1
CSS Price at posting:
4.1¢ Sentiment: None Disclosure: Not Held
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