Peter HodsonConstellation Copper Corp.CCU.H.VDON'T BUYDec 14, 2007
This has been a disaster in the copper space. Did a financing at $2 and he was so annoyed at the financing that he got out. Company just announced that they have liquidity problems.
Copper prices have dropped precipitously. This is a very small company and very speculative. Doesn't think there will be near-term production and financing will be next to impossible to acquire.
Doesn't feel the story is too compelling. Thinks they disappointed in their yield. The fact that copper formed a double top didn't help either. Chart shows a falling wedge, so maybe the worst is over. If you are in the stock, be patient. Something in the fundamentals is still not resolved.
Of all the commodities, copper is the most vulnerable in terms of price decline. Had some production problems. Did an issue that he doesn’t agree with.
Has not recovered back to where it was before it did its financing. Pretty good asset. Have solved some of their production hiccups and the worst is over. Takeover target.
Not real happy with the company at this point in time. Did a financing 2 weeks ago to increase their exploration budget. Felt it was completely unnecessary.
June/July production was a little behind forecasts. Expects investors from here on in will be more focused on intermediate and junior mining companies.
The main property in Utah will be in production in 3 years. They have a zinc play that will probably come on in 2008. At this point you should be getting a pretty decent cash flow. In a geographically safe area.
Net asset value is higher than current market price. You may get a situation where it is either acquired or revalued. A big block of stocks overhung the market and it got pushed up to that block so there are no incremental buyers in the short-term.