Still deciding19 Sep 2009 22:59
Heres where i am..
Im encouraged by last interims, by stellite coming in on budget and time and in production, by good resource base and what appears to be a financial stable company.
However where my concerns are..
No updates regarding stellite sales..? further.. CHX claimed they could receive premium for early primary product. If they managed this then interims should be pretty good from growth perspective. However if there are no sales as of yet.. how will the market react to further delay?
Problem with samancor also adds risk.. though CHX anticipate this getting resolved in 2010, thereby short term it shouldnt have to much impact on the sp if all else goes to plan. If true worth considering CHX claim 'independent analysts value Stellite alone at more than the Company's market capitalisation, so that Mecklenburg is wholly discounted in the current share price.'
Also. Brian Moritz and the link to Philip Edmonds of CFM. Both together in White Nile I believe. Lets hope BM is more dependable that PE.
I shall have to do more research over the weekend and have a think. I do look at the recent trades through september and wonder if there is a pattern of stakebuilding. Year ends due 30th september (hemscott)...
Any thoughts, views and opinions on CHX would be appreciated.
ATB OP