I have been doing some research on this stock over the past few days - I am really concerned at management's dillution and simply creating more shares, why? From 1.1b to 3.1b in 12 months. Obviously made an aquisition and funding working capital but at the end of the day EPS matters. Furthermore the company has 9m in the bank as at Dec 2010, sure has a dabt facility to draw on - but raises another concern, namely if they need to tap the market again.
If I touch a nerve of loyal investors, I'm not questioning the assets - Im questioning the management! Please refer to Note 19 from the interim report for details.
Note 19: Issued capital 31 December 2010: 3,097,640,409 (31 December 2009:1,106,075,932) (a) Movement 2010 No. $ Balance at 1 July 1,376,191,741 100,829,337 Issue of ordinary shares during the half-year: Placements 875,950,000 52,460,800 Share Purchase Plan 290,909,090 16,000,000 Exercise options 294,056 14,703 Conversion of debt 143,310,349 8,038,944 Conversion of debt facility 132,000,000 6,628,000 Conversion of convertible note 60,000,000 3,644,406 Consultants fees 66,771,377 4,206,348 In lieu of introduction & capital raising fees 92,213,796 5,901,682 Facilitation Fees for coal project funding 60,000,000 3,500,000 Share issue costs (5,865,694) Balance at the end of the half-year 3,097,640,409 195,358,526
CCC Price at posting:
68.0¢ Sentiment: None Disclosure: Not Held