Coal mining services provider, CCI Holdings (CHL) are about to reply to the 31cps bid made by Campbell brothers, (CPB). The TARGET"S STATEMENT to be released tomorrow and sent out by mail to all shareholders will be very positive. the company will speak about the boom they are experiencing in their market sector, and provide earnings forecasts for this stock which is growing very strongly.
Expect the forecasts tomorrow to place the stock on an estimated 06/07 P/E multiple of 7-8.
This one would have to be considered a strong buy when you consider CPB themselves are on a P/E of 20, and others in the sector such as WOR are 30+.
The market is currently re-rating CHL after a period of accounting losses in 2004/05. It looks like there is plenty of upside still to come. Why not get with the 'smartmoney' and enjoy the good news holders of CHL will recieve tomorrow.
CHL Price at posting:
0.0¢ Sentiment: None Disclosure: Held
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