CBH 0.00% 23.5¢ cbh resources limited

tech vs fund

  1. 1,262 Posts.
    Technically:

    CBH is still holding support @ 61.8%.

    61.8% of the last move from 3.1c to 85c comes in at around 34.5c, support shown here twice. No guarantee that it is 100% certain as the market could drag it down through this.

    Major trendline support exists down around the 27c mark (6 year). I have my eye on this area bigtime!







    Fundamentally:

    Year End 30 June 2008F 2009F 2010F
    Revenue (A$m) 267 317 424
    EBIT ($m) 70 79 153
    Net Profit after Tax ($m) 40 44 90
    Net Debt 58 172 150
    EPS (cents) 5.4 5.3 11.0

    (Source: Stock Resource)

    The next 12 months look relatively flat..., however;

    The PEM j/v will add some value as combining of their assets in the Broken Hill area would save capital investment.

    For CBH in 2008 higher grade stopes will be accessed in the central portion of the mine and a new decline will be commissioned. This could add to the bottom line and hence EPS.

    As a result, current PE around 8x 2008 figures. Moving well into 2009 and a similar PE should yield a share price towards the 88c mark anticipating earnings of 11cps in 2010. However, a lot can happen in 12 months.

    Trade safe!






 
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