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Compania Cervecerias Unidas ADR Representing Two Ord Shs V.CCU


Primary Symbol: CCU

Compania Cervecerias Unidas S.A. is a diversified beverage company operating principally in Chile, Argentina, Bolivia, Colombia, Paraguay and Uruguay. The Company operates as a brewer, soft drinks producer, water and nectar producer, wine producer and pisco distributor. The Company's segments include Chile, International Business and Wine. The Company carries a portfolio of products, which includes a range of brands of alcoholic and non-alcoholic beer, with Cristal as its primary brand in Chile. In addition, it produces and distributes Heineken beer; distributes Sol beer and Budweiser beer, and distributes and produces Kunstmann and Austral beer in Chile. The International Business segment includes operations in Argentina, Paraguay and Uruguay. The Company, through Vina San Pedro Tarapaca S.A. (VSPT), produces and markets a range of wine products for the domestic and mainly the export market.


NYSE:CCU - Post by User

Comment by HotSnoton Dec 02, 2007 2:23pm
204 Views
Post# 13903129

RE: RE: Reasons why SP should continue to rise

RE: RE: Reasons why SP should continue to riseif i am not mistaken...they did shut down mining operations...but they are continuing processing operations of the current inventory which should take "1-3 years". After that they will have no inventory and a lag effect if they. This 1-3 year time frame is a stall tactic to continue searching for additional financing while attempting to cut costs and pay down debt with inventory already acquired through the previous mining operations. After this period, there is no plan and there will be no inventory remaining. If financing is secured then CCU has a good shot at recovery but who will finance and at what price is the question. To achieve even another 30 -40 milliong of financing a share price of around .40 conseravtively speaking would be necessary to avoid extreme dilution especially considering previous debentures were at 1.86. I could be wrong and way off but as far as i can tell this is the story. As another poster pointed out, CCU has cut the costs of leaching by getting rid of problematic processing techniques and the effect is a very similar result to the end product in retrieved copper. If they had been doing this the whole time perhaps they would be in better shape today. Wasted money in manpower, equipment, repairs and time contributed. They can now eliminate all of those problems and achieve virtually the same leaching results without all those costs. They should have used this "new" process in the first place. I have no idea why they chose to make things more complicated initially. Just poor planning i suppose, but im sure i dont have all the details so what do i know. Just my opinion.
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