After weeks of sorting through HC threads, I do believe I have worked out what's happening with Continental Coal.
It seems to me that we've been had. We have fallen victim to an elaborate rouse at the hands of DT, JB and scurrilous others (including those who insist on posting optimistic material under the CCC heading).
From what I can work out, a former senior executive from BHPB has, in 2009, cunningly quit his employ at the world's largest mining company to "takeover" a no hope coal exploration company in Sth Africa. His plan, whilst apparently floored, was to acquire lots of worthless resources and an offtake agreement with a unbacked global coal purchaser in EDF.
The masterstroke, which nobody saw coming, was to establish a deceptive renumeration scheme which incorporated moderate salaries (all well below the industry average), so as to give the appearance that they weren't making any money from the scam. Indeed, as far as the shareholders were led to believe, those working on CCC day to day would only get their true reward if the SP went up to reflect anticipated earnings.
And the rest, as they say is history. The doomsayers were right all along. The fund managers, brokers and Alex had all been had. The company, with apparently so much going for it, was a mirage. A furphy.! In three years time CCC will still be trading at 6.5 cents and Current Affair will report on this as the great ASX swindle of 2011.
Don't say you weren't warned (Either that or CCC will be valued at $1+ and I'll be laughing like a big fat spider.)
CCC Price at posting:
61.0¢ Sentiment: LT Buy Disclosure: Held
