CFE 11.1% 0.4¢ cape lambert resources limited

cash box and m and a potential

  1. 2,382 Posts.
    how many people remember the end of the dot com era?

    when the bust came all these companies that raised capital basically turned into cash boxes looking for opportunties.

    i dont hold any CFE and never have and probably never will, however IF they get the $400m+ in cash they will have just about every mining junior in their office pitching a deal.

    Is this a good thing? well if i was CFE i would be rubbing my hands together because the credit crunch has brought the true meaning back to CASH IS KING!!!!

    While i dont care to much for the management i would love to have $400m+ at my disposal. CFE will probably take a good look over a huge set of potential takeover candidates. I would be looking for companies that already have some cash on the balance sheet and where their share price is close to or at cash backing per share.

    If you dont think any of these companies are out there think again because i can think of 2 that have a combined $120m in cash and have a combined market cap of around $150m. So they could do a script takeover, strip the cash out and the spin out the projects they dont want and focus on the ones they want.

    Hey preston they now have $550m+ in cash, no debt and some interesting projects that they could now fund.

    All you need to do to find the ones they will take a hard look at, is look for the iron ore projects that were better than CFE, these will be their targets.

    I havent looked at the FDL thread yet but i would bet that they are all saying that CFE will go for them. If CFE did the management really has no idea. The thing hasnt even been drilled, they have no cash and have no idea about iron ore, just diamonds and they werent to good at that.

    Your best bet is starting to look at the potential targets because when this thing turns into a cash box it will probably take another 2 years before they do anything, ie get projects up and running but you can bet that CFE already has its targets identified. They would of had them circled with a big red pen before they left for the trip to China.
 
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