China Ceramics Co. Ltd. (CCLTF)

[saltvine_00]

I am looking at the warrants, risk reward seems quite decent at this stage but the common seems to have a heavy ceiling on it.

so lets say we get to $14.50 this year, that would put us at around 25.5 million shares outstanding with net income of 23.8 million. or around .93 per share for 2010

give that a pe of 10-15 and price is $9.30-13.95

going forward to 2011, 29.6 mil shares and net income 31.4 around 1.06 eps, pe of 10-15 is $10.6-$15.9

is this a reasonable expectation? I guess the real upside would come if people gave this a pe of 20 etc, but the shares dilute out the upside pretty well once warrants are redeemed and shares are released

It makes perfect sense to me to buy the warrants for $1.60 and sell them for $4.0-5 when this is in the 12-13 range.

Any thoughts?