China Ceramics Co. Ltd. (CCLTF)

[redman_2014]

I'm sure we will see some weakness in the common and warrants of China Ceramics until the market determines whether the tightening policies will dampen or kill the housing industry. I personally think this tightening will help because it hopefully is eliminating the threat of a problematic overheating industry. I don't know how much the company will be affected by the policies because tiles are used in renovations and reconstructions, plus the government is also building 3 million affordable homes for it's residents. So with earthquake reconstruction, an increasing number of renovations due to less-than-stellar quality control in the industry, and the affordable housing contruction I think China Ceramics will still be busy, it's just tough to determine future sales numbers.

I don't know if CCLTF will grow at it's proposed 30% growth rate, but I'm not worried at all with my large warrant position. A two and a half year expiration date allows for a lot of patience, plus the value is way too compelling with the common selling at 3x trailing earnings with potential uplisting this year.

If the warrants dip a lot I will be a buyer.


-Adam