GREY:CPYCF - Post by User
Post by
bocamanon Dec 10, 2010 1:10pm
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Post# 17829919
it's about cash
it's about cashCEC needs cash - it's got real expenses in moving the Raven project through the environmental assessment processes. On the books the company's cash position looks okay, but the reality is that the cash is mostly shares of CUM.
CEC mgmt are also CUM mgmt - how would it look to CUM shareholders if CEC were to dump its CUM shares? No better than it would look if the situation were reversed. Bad signals and bad faith all around.
This bump in the stock is almost certainly related to CEC solving its short-term cash crunch - just like it did at this time last year. Watch for the necessary announcement, I say, and be prepared to sit for a long time with two-bit shares.
As for the Raven coal, it is marginal met coal at best, and the viability of a mine is riding entirely on high coal prices. When those retreat, so will the mine, and so will shares of CEC.