I'd agree, a completed GIMG and Northam and (insert energy project here) will make very little difference to CCE share price unless these projects are cash generating, and I'd go even further and say that the company as a whole has to be at least break-even or close in order for the share price to have a sustainable rise. And as we've seen in the past, sharp jumps of the share price higher on good investor sentiment rather than fundamentals are usually exploited by management to do a new capital raising at an 'attractive' price.
There was a great thread on here regarding the history of capital raisings over the past 10 years for this company. Its ugly reading. The constant impending threat of future capital raisings is hurting the value of this company the most. Each is horrendously dilutive for existing holders (hence 2.6b shares on issue) and I hate to say it but a large chunk of the capital raised goes into admin costs, directors salaries etc. Not productive expenses like employee salaries (Assuming they are winning work/furthering research) and cost of sales. The only thing that'll stop these raisings is a profit. I know personally I would not tip another cent into this company until the risk of cap raising after cap raising abates.
I honestly think a CCE that is breaking even, in the growth industry its in, also on the cusp of a breakout technology in CETO would be worth many multiples of today's price. But they have to stem the bleeding first.
CCE Price at posting:
3.9¢ Sentiment: Hold Disclosure: Held
