Its interesting that not many are drawing any kind of comparison...

Its interesting that not many are drawing any kind of comparison between whats happened in the US in the last few years over whats happening in Europe RIGHT NOW.In one way its probably even worse for Europe as there are many countries that have little/no capacity to weather another financial storm because they are so inextricably tied to credit.

NOW have a think about all the hype that many were going on with with China/India disconnecting from the western worlds major financial issues.IT DIDNT HAPPEN.

China/India markets were still affected by the US's nasty economic situation because its a MAJOR DESTINATION FOR THEIR EXPORTS.

There are many factors combining to make this a sell atm to anyone that doesnt want to be in ANY higher risk investments.Of these the basics have to be

* Doubt over company fundamentals

* Shares on issue/liquidity

* Tax time

* Rubbish markets

Imo CCC's current register structure relies heavily on higher risk money being prepared to work the positives on ALL these factors for the sp to head up.Atm we have a market that is prepared to short stocks in order to work any small highs as companies sp's fall and this is exacerbated by the liquidity that CCC sees.The falling knife comparsion is good one as its very hard for a company with high liquidity to gain traction once momentum is down.

All recent annmnts have been good fundamentally supporting annmnts in terms of putting a foundation under the companies LONGER TERM DEVELOPMENT but they havnt seen any improvement in what the company needs in the short/medium term,that being the financing of their near term projects as well as paying for the balance of the Mashala acquisition.

These near term financing factors have a big POTENTIAL for being very dilutive in that IF there was the need to go to market RIGHT NOW, and in fact one could argue given what happened with many companies attempting to find finance in the last recession when credit dried up,that the markets are simply finding it very difficult to see any light at the end of the financing tunnel for CCC.

Im not going to pass advice on what might happen if the top three factors were resolved to some greater degree,I'll leave that to others judgement.

I dont think anything can be done about the rubbish markets until these countries take their medicine for being heavily in debt.Its no different to you or I carrying a big credit card debt,at some stage it MUST be paid down, whether it be in asset/credit rating destruction, read bankruptcy, or they pay it down by heavy austerity measures or a combination of the above.As we see this situation play out the effect is the same,demand will plummet and growth will be crimped/minimal.

Can CCC do something about their POTENTIALLY finacially dilutive situation?

Well CCC certainly seem to have some fundamental mechanisms IN DEVELOPMENT.But with the markets carrying so much doubt in wanting to believe that such situations can carry any kind of positive outcome atm there can only be one outcome for the sp,it will continue down until its hits its base level of support until we see resolution of these financing issues.No matter how much some of us wanted to believe that the buyers at 5c were able to support the sp in this current market(and it looked as though they might there for a little bit),ultimately the support is weak relative to the want of the market to short such a liquid stock.

Apart from those that took a position at mid-low 3's,and there wont be many,many here will now be in the red.I posted the other day that 6 of 16 stocks the D/D report recommended are now heavily down % wise and its a common thread throughtout the high risk spec end of the market.

Would one recommend selling out of those heavily down stocks?

I like to have a think about what would happen if we all did the same at the same time with no regard to the inherent value of the company.At some stage the market will say,or have reason to say,enough is enough in terms of selling down the value of the company unless the market sees no value in the company and its hard to contemplate CCC being in this much trouble although some might think its a possibility.

Holding on for grim life as these markets sort themselves and hopefully we'll soon see some anncd info to clarify the fundamentals/financing situation coming up to the GM.

d.