CEY - Centennial Coal

[countryboy]

media are certainly letting consumers know price rises are coming. My understanding is thet CEY have a large % tied up with contracts to NSW generators. I think we could see quite a price rise for power if current coal prices are maintained well above the $100 mark

my interest with CEY is for its takeover vulnerability. Underperforming due to current contract prices and hence a SP that reflects this.
I enjoyed a wonderful ride with Gloucester.first with Noble and then the next crew $3.60 to selling out above $9

more of the same please

 

[noirua]

I sold Centennial in early September last year and it proved to be quite a bit early.
CEY sold Anvil Hill to Xstrata when pressured for cash and that move looks now to have been unfortunate.
Prices are high in this sector, though Centennial look to be in the driving seat now. Don't forget, 'Ice Road Truckers', it is that dangerous and the ice could give way anytime.

 

[vincent191]

CEY has long term contracts to sell most of it's output to local power stations, does anyone know if the contracts have a rise & fall clause? Will CEY be able to charge more because global prices have gone up?

 

[vincent191]

Something going on??? Good movement in sp? Anyone heard any good rumours lately? Lots of action in the coal sector, flavour of the month. Continued strengthen in the next few days should wipe out the usually high number of short sellers (see ASX website.)

 

[countryboy]

I think i recall seeing that cey sells 30-35% of its coal to overseas markets remaining 70% is locked into local(NSW) power generators at a figure less than $100

380 mill shares and total proven coal resource of 2.3 bill
(hope these figures are correct ...memory is not that flash late at night)

Im on this and still to commit to at least two other coal stocks as potential TO targets

 

[vincent191]

countryboy, cok one of your other targets? My question is CEY is, does CEY's domestic contracts have a rise & fall clause? Most people are focused on it's export, but if the domestic contracts prices have a rise & fall clause then if international prices go up then domestic prices should also go up??? Correct? If so then we can expect CEY earnings to go up.

 

[Logique]

Own and like CEY.
As to the general strength in the coal sector, there are other positive background factors (aside from the whole takeover saga over at MCC) - general world economic recovery firing up buyer demand; and talk is starting up again about the long term commodities bull market; and the Reserve keeps saying that a partial rationale for increasing domestic interest rates is the expected ongoing strength in commodities prices and demand.

It's just a sweet spot for the industry atm. Higher interest rates are driving the $AUD upward, notionally denting exporters earnings, but that's the beauty of CEY, it has strong domestic markets as already described by other posters.

 

[Logique]

We'll just have to see how how the proposed RSPT and various other macroeconomic, including sovereign, factors play out.
Weak technical support at 4.00 is under pressure, below that 3.50 looks the next strongest daily level. It would be a big retrace if it falls that far. Technically the near term is anybody's guess.

 

[pacestick]

Aftet months of algorithmic trading Banpu of Thailand has increased its holding in CEY to 19.89%. What is interesting is that in response to australian newspaper speculation that Banpu now has no imediate plans to purchase more shares in the company Banpu has asked CEY to issue a copy of a letter from Banpu stating that that Banpu has not released any statements to that effect and the aforesaid reports should not be relied on. The letter in PDF form is on comsec sorry i could not down load it

 

[vincent191]

Banpu has offered $6.20 and the CEY board has recommended shareholders accept this offer.

What I don't understand is why are people selling for $5.80?? Aren't they giving away 40 cents if Banpu gets the required ownership percentage and FIRB approval??

 

[blackjack]

Banpu has offered $6.20 and the CEY board has recommended shareholders accept this offer.

What I don't understand is why are people selling for $5.80?? Aren't they giving away 40 cents if Banpu gets the required ownership percentage and FIRB approval??

yes i dont understand this either
anyone knows anything
please advise
as my software still advises buying at $5.96

 

[skc]

yes i dont understand this either
anyone knows anything
please advise
as my software still advises buying at $5.96

well... $6.2-5.96 = $0.24, or ~4%. If the transaction takes 6 months to complete then it might make sense (in terms of time value of money) to sell now below the bid price and look for opportunities elsewhere

 

[vincent191]

Well, I sold mine. Guess a bird in the hand is worth two in the bush. Although some may argue one in the bush is better than two wanks in the hand.