GCL 0.00% $3.54 gloucester coal ltd

this is madness

  1. 163 Posts.
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    I get that coal prices are down.

    I get that Ausbill Dexia smashed the market down

    I get that coal companies are currently on the nose.

    Still at today's prices...

    we are talking about a CVR that is worth $3 per share,
    and a business which according to the independent expert is worth $3.95-$4.65

    Lets say the business is only worth $3 thanks to the changes to coal prices in the last 2 months.

    Still $3 (for the business) + $3 (for the CVR) is a whole heck of a lot higher than the current $3.90 share price.

    Even if you want to discount the CVR by 15%pa, its still worth $2.30 (+ 3 = $5.30).

    Basically we can buy the Yancoal business (said to be worth at least $3.95) for between 90c and $1.6.

    Madness!

    Good luck to all holders!
 
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