The market can do silly thing. If you sell, how are you going to be when the stonk goes up 10% per day for the next two weeks? That'll take it to 40c.
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With a clear signal that the government is going to step in and support the operation, how does this impact fundamental valuations beyond day to day production numbers? Does this now mean that the company should be looked at from a macro valuation position rather than a micro valuation? So, to compare macro, we'd just do peer comparison with a similar company that produces similar product under a similar government taxation system... closest I see is SMR with a market cap of around $1.7b, near zero debt and 13mtpa coal... SMR coal is pci as opposed to Curragh with HCC & pci. They're pretty similar... except that the CRN.AX market cap is $300m minus some debt to give us EV a little less than $300m. If CRN is even half of SMR, then we've got a way to go up towards 50c from here... a dollar share price to be equal to SMR...
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I'm preparing myself to top up, feels to me that this dirty stonk is coiled up and ready to keep ticking up for a while yet.
CRN Price at posting:
18.5¢ Sentiment: Buy Disclosure: Held
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