CEY 0.00% $6.16 centennial coal company limited

Centennial Coal - Bargain?

  1. 3,567 Posts.
    Well what a market this is... CEY take over the governments coal assets at one of the cheapest $/tonne takeover in recent times and the price goes down. Possibly due to existing shareholders selling some shares to take up the rights at $1.55.

    CEY goes ex-dividend tomorrow (I believe).

    The new CEY will sell approx 80% of its coal into long term fixed contracts. This should be very appealing to conservative investors who prefer utility style investments.

    With CEY's superior management skills, they should be able to increase productivity even further making a PE of >10 very likely. This would suggest a share price of around $3, double the existing share price. Also yielding 10% dividend.

    Looks good to me... Any other ideas into the weak share price?
 
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