I would add this regarding CCGY's 2q09 results: there were some non-cash charges to GAAP net income, primarily related to valuation of warrants. This non-cash charge has absolutely nothing to do with CCGY operating activities....
Without the non-cash charges, CCGY earned 1.5 cents per share in 2q09. So even now CCGY are trading at less than 10x annualized 2q09 earnings. This is a huge positive when you consider the following:
1.) 2q09 economic conditions were very, very bad. CCGY were able to generate positive cash flow and positive earnings during a horrible economy.
2.) Some time next month they will finish construction of a plant that will increase their capacity by over 5x.
3.) CBI.L were granted tax breaks on their biodiesel facilities earlier this year...ostensibly, CCGY have the same type of facilities in the same tax jurisdiction. CCGY are also pursuing certification for this tax break. If this comes through it will be a huge boost to margins. If not...well like I said, less than 10x multiple on economically depressed results.
In short, it seems that all the negatives are behind this company and all of the positive lie ahead. It seems like a slam dunk that they'll be earning at a 38 to 40 cent annualized rate this time next year.
AI
