Well my offload theory seems correct IMHO given the usual 5m dump into 0.3c whenever the opportunity arises. However it could well be placement holders taking profits as was suggested by Manfuzu.
Nevertheless after reading through some of their announcements yesterday it didn't take long to brush my scepticism aside and take a punt on this company. The carbon business, if they can pull it off, certainly looks like a real cash cow and massive profit margins. Last night I also looked into COZ whose 2009 EBIT was $1.59m with an MC of $52m. Obviously COZ is far more advanced in this field however if MCL can pull this off they are clearly in need of a re-rating. Given the nature of the business where projects are in excess of 20 years, growth potential is massive. COZ turned over $15mil in 2009 and they just released their half yearly report this morning with a 53% increase in revenue from the same time last year.
Also worth posting their summary on the global market:
"The reporting period saw unprecedented global attention paid to the issue of climate change with considerable emphasis being placed on anticipated outcomes from the Conference of the Parties to the United Nations Framework Convention on Climate Change held in Copenhagen in December. The meeting produced a political statement referred to as the Copenhagen Accord.
Since the Conference of the Parties, key nations have begun the pledging process as part of the Copenhagen Accord. Outside the multi-lateral framework, domestic climate policy also continues to evolve in many countries. All Australias major trading partners continue to develop responses to climate change and in many cases these include use of market-based mechanisms such as emissions trading:
The European Union has agreed a conditional 20-30% emissions target for the Copenhagen Accord. Within Europe, the European Emissions Trading Scheme continues to operate, with carbon market analysts predicting an increase in value of that market during 2010.
The US submitted a medium-term target to reduce greenhouse gas emissions in the range of 17% below 2005 levels by 2020 to the UN Framework Convention on Climate Change (UNFCCC). Domestically, a comprehensive compromise bill that includes a cap-and-trade scheme is under development.
China, another big emitter relevant to Australia, is reported to have affirmed that it will endeavour to cut the amount of carbon produced per unit of economic output by 40 to 45 percent below projected growth levels by 2020 from 2005.
Japan submitted a target of cutting emissions to 25% below 1990 levels by 2020, and domestically has announced a US$8.9 billion spend on anti-global warming measures as part of a stimulus package. Internationally, the Japanese Government remains a significant purchaser of AAUs.
Late in 2010 New Zealand passed amendments to its emissions trading scheme, providing significant market certainty. Under the New Zealand scheme credits from forestry are able to be converted to AAUs and exported to other countries. Several such trades have already taken place."
Provides plenty of opportunities for MCL.
As far as the directors go...well they seems to be plenty of accounting and IT experience amongst them but none of them really stand out. Can anyone add anything re management's competency in breaking into the carbon trading industry? Do they have some greeny turned capitalist on their payroll that's going to turn this company around???
Eitherway this punts quite different for me...nice and green!!
Cheers,
Arkie
MCL Price at posting:
0.3¢ Sentiment: None Disclosure: Held
