irrational selldown

All the shareholders who have been selling down CFE in recent days are going to be very very sorry in the not to distant future.

Here we have a company who is no longer speculating about what their project could be worth, they have an offer of COLD HARD CASH on the table.

They are selling 70% of the the iron ore project for a cool US$192.50M.

That translates in $330MAUD for the whole project.

CFE has 505m shares fully diluted on issue, and at 50 cents this values them at $250m.

So we have CFE owning a project worth a concrete $330M(no speculation, no NPV calculation, no PE ratios, no estimations, etc), someone has come along and said I will pay you $330m for this and they have a market cap of $250m.

Something doesn't add up here ............

Throw into the mix the forecast increase in the iron ore price of 30% in 2008 by macquarie and other analysts out there.