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CCE

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3.9¢ carnegie clean energy limited

Time for action SH.

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wallstreet2

447 Posts.

416

25/08/18

11:03

Post #: 35175911
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Originally posted by wallstreet2 ↑

Your post is absolutely spot on and the questions you raise need to be answered to Law Enforcement Bodies by Management.

Very vague statements (or motherhood statements) have been made to try and hoodwink Shareholders to vote in favour of the proposed demerger.

The fact that they bought EMC in the first place and try to offload it in less than 2 years , after having stated publicly of the sales to the tune of $30 mil EMC would bring to CCE in the first 12 months and the fact that the expected sales by EMC never eventuated would suggest that CCE Management did not do a proper due diligence before writing out a cheque for $14 mil. For this alone the Shareholders should take Management to task and also for losing $10 mil so quickly for their bad business decision. Additionally Management should be asked and prove if there was ANY OTHER OBSCURE REASON ??? FOR THE 2 TRANSACTIONS (PURCHASE AND SALE OF EMC IN SUCH QUICK TIME AND AT A SUBSTANTIAL LOSS TO SHAREHOLDERS).

My guess is that , No mention was made of WHEN they expect to be profitable because they know full well they would never be profitable whilst trying to prove the viability and commercialisation of CETO 6, (or 7, 8, or 9 ?) , AND if they were to retain EMC they most likely would be less profitable ( more likely bigger losses with high cash burn) as has been proven since they bought EMC.
It is also my guess that most projects undertaken by EMC/CCE were done at less than cost price and that is evidenced by the fact that they have always run at a loss.

The last sentence of the last paragraph of their announcement today said " AS A CONSEQUENCE OF THE TRANSACTION CARNEGIE WILL ALSO PRESERVE ITS ELIGIBILITY FOR THE R & D TAX CASH BACK INCENTIVE"
That statement proves to me beyond doubt that Management see that structure as being the only way CCE will continue to survive for some time ( but also with the help of SH putting their hands in their pockets from time to time to top up the cash shortfall)
The proposed sale of EMC would give the sale value by issuing shares to CCE SH who would end up with an equal or greater risk position as SH in EMC /TAG (via the renamed entity MPOWER).
The question I have is ---- why is CCE offering shares in MPower to CCE SH for the sale of EMC when CCE needs all the bloody cash it can get its hands on to stay afloat ??
To me the logical answer is they are trying to create a look or impression that they are trying to reward CCE SH after years of financial suffering , and hoping the SH will vote in favour of the sale, which may give CCE a better chance of survival and underwrite MO's trajectory to retirement on his huge undeserved salary.

Cynical ? -- maybe/ maybe not -- but I welcome alternative views/comments.

SH Burying heads in the sand will not assist in the Company's survival!

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Time for action SH.

CCE Price at posting: 1.9¢ Sentiment: None Disclosure: Not Held
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Last 3.9¢		Change -0.001(2.50%)		Mkt cap ! $13.91M

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Time for action SH.

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