Letterman Top 10 reasons to own CHDAs CHD attempts to break through 70 cents it has given me cause to reflect on what we have here:
1. a robust resource with low costs , great infrastructure , tremendous location, knowledgable management and a very good partner
2. great upside at 66 cents
3. analysts with targets that reflect a fully financed project of $1.10+ which I suggest are conservative at US$1.50 copper
4. great leverage to higher copper prices. Every 10 cent rise in copper adds approx 15 cents in share price. At US$2 for copper our target price is is almost $2. With copper north of US$3 today there is lots of room if copper declines from present levels.
5. growing institutional support with more to come based on the story
6. a sector that will undergo an increasing consolidation phase and with companies that have cash and/or share currency to finance a take out with a fat premium
7. add a 30 percent takeout premium to my $2 share and you are closing in on $3.
8. I am also guessing the analysts have some room in their model supporting a $1.10 target for stuff like silver and gold credits and the like
9. I recall reading one of the analyst reports recently who speculated CHD was worth nearly $4 once the mine opens
10. chart looks quite good too
What have I missed in my LETTERMAN top 10 reasons to buy CHD list
This thing is ridiculously cheap. RNG knows it and is riding it from 65 cents to my $3 takeout target thanks to a smart investment banker from Haywood I am guessing based on who did the trade. Once we get to a buck we will see more funds step in.
Can't see any flaws in my assemblng of the facts.
We just need to make sure there is a CHD auction so that we get our fair value.
Thoughts!!!
Coyote13