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cm001

260 Posts.

28/07/14

12:13

Post #: 13724479
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Originally posted by psi81 ↑

can an anyone who has been a longer term holder provide me any fundamentals that may prevent this share price from teaching previous years highs?

The fact it has been diluted to the level of your average homeopathy treatment. Management really, really stuffed up and were left with a massive pile of debt, a pathetic share price and nothing to show for it except a bunch of stranded thermal coal deposits in the Surat that will not be developed in the next 10 years, if ever. This left them no option except to raise capital at 4c and roughly triple the amount of shares on offer, so it will never head back to 50c like it was before SK pulled out of the previous funding deal. Think about that - they were going to raise money at something like 53c, but instead ended up having to raise that money at 4c. That tells you how many more shares they had to issue.

This stock will never again reach its previous years' highs or even anywhere close to it, but at full production it may justify a SP in the range of 10-20c. I personally think it should be trading at about 7c at the moment. If the PCI price goes back to $150/t COK would be nicely profitable.

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Thanks Psi for the response,

unfortunate te about the massive dilution. Still, when sentiment around coal changes we should see a decent sp rise.

cheers

COK Price at posting: 2.6¢ Sentiment: Buy Disclosure: Held
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