CCH/CBLRF (gold/copper miner) as a Value Play
I’d like to bring your attention to a gold and copper Mining company. I am presenting this company as a Value Investment.
Campbell Resources
CCH.TO (Toronto, Canada exchange)
CBLRF.OB (United States OTC exchange)
Website: ressourcescampbell.com
It’s now trading under 10 cents, but the historical price has been above $2.00, and above $10.00 at earlier times.
Here’s a long term chart (notice the recent volume explosion):
bigcharts.marketwatch.com
Weekly chart:
tinyurl.com
Campbell is a copper/gold Producer that has been around for 40 years, and once traded on the NYSE. In June 2005, Campbell’s dropped down to 5 cents, after they announced they would seek restructuring protection under “CCAA” (a Canadian act, similar to bankruptcy in the US.)
But the market now sees that Campbell will (almost certainly) be able to emerge from CCAA protection in about 45 days. Press releases indicate that the restructuring has been approved by the Quebec Courts, and the creditors. Risk is minimal.
The volume in CCH.TO shares is going berserk. For 4 weeks, volume has been 50x or 100x what it was in the summer. CCH trades on the Toronto exchange, but you can easily Buy the tracking symbol (CBLRF) on the United States OTC exchange. CBLRF has also had strong volume, but the CCH.TO chart tells the complete story.
The involvement of “Sprott” should help the Value investor see the complete picture. Here’s the website for Sprott Asset Management:
sprott.com
Sprott is the most respected, and most important Mining and Natural Resources investment firm in Canada. Eric Sprott is very well respected, and they have John Embry as their Chief Investment Strategist. Mr. Embry has been on financial shows on TV and radio numerous times.
In April 2006, there was news that Sprott was buying 100 million units in a private placement. (a unit is one full share and half a warrant).
Just 3 weeks later, there was après release indicating that Sprott was increasing their purchase to 125 million units.
lexdon.com
And now, In October, Sprott has grabbed even more shares. A Rights plan is being offered to current shareholders, and Sprott has managed to grab half of the Rights (35 million Units) as well.
Refer to the following CCH press release:
Campbell gets TSX approval for rights offering
2006-10-19 18:40 ET - News Release
Mr. Andre Fortier reports
CAMPBELL RESOURCES ANNOUNCES RIGHTS OFFERING AND RECEIPT FOR THE AMENDMENT TO A FINAL PROSPECTUS
Conclusion:
This is an old gold/copper miner that has been around for over 40 years.
The price is under 10 cents because of the restructuring Restructurings are normally risky investments, but we have good indicators that Campbell will successfully emerge in just about 45 days.
Seeing the most famous Mining and Resources investment company in Canada scoop up half the shares should be a very important indicator for the value investor.
Seeing Sprott come back two more times, each time increasing their private placement, is a profoundly important indicator. Sprott will now own over half of the outstanding shares (outstanding shares will be 400 million, fully diluted).
Right now, you can buy for around the same price that Sprott is paying. I explain why in my numerous posts. An Investment firm, or multiple firms, is trying to keep a “collar” on CCH while the right trade. I document that in my posts on the StockHouse board:
stockhouse.com
Campbell is a current producer of Copper/Gold. I have calculated a forward PE ratio of less than 1 right now. I invite you to read my “due diligence” (30 different links).
stockhouse.com
There are Fundamental, Technical, and Value based reasons for owning this stock.
Please visit the CCH message board (right here in SiliconInvestor). |
