How much would you pay to make a $1 annual return?
$8 would be pretty cheap yeah?
Well $4 would be an out and out bargain!!!
CHL just reported half year cashflow of 3.2M, and is expecting second half growth, so a cashflow of 6.5M+ will be recorded for the 05/06FY. The company was recently capitalized at just 26M when 4 company directors purchased shares.
And why wouldn't they, when the cashflow is 25% of the capitalization!!!
In other words an outlay of $4 buys an annual cashflow of $1.
I can't see a cheaper cashcow on the sharemarket. As an added bonus this is a company which has been around for over 15 years and has a mature position in a high growth market sector (coal mining services).
A cash outlay of $4 to buy an annual cash inflow of $1. Now that is attractive!!!
Looks like the market is waking up to this bargain as the shareprice has crept up to 21/21.5c since the directors purchased their shares at 19.5/20c.....don't procrastinate on this one :-)
CHL Price at posting:
0.0¢ Sentiment: None Disclosure: Held
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