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Re: properlynumb post# 38412

Tuesday, 08/31/2010 6:50:33 PM

Tuesday, August 31, 2010 6:50:33 PM

Post# of 83496
There is some truth there.

Our CC's are just as good as the next. They are all the same.

Any dramatic increase to available CC's does favour the buyer and anyone wanting to sell in a buyers market is far more likely to drop their price.

In fact the more CC's available the more pressure on everyone to drop their price.

The greater the supply the less everyone's CC's are worth.

Our CC's may be the same as everyone elses but with increased supply the pressure on everyone to undersell their competitors mounts.

Anyone that wants to sell is going to have to drop their price in the current CC market.

That happens all the time and in all areas of business and services.

Contractors have been undercutting each other for decades and the bigger the contractor the more wiggle room they have.

The more competition and supply for the same service or item the cheaper it becomes.

The development of additional and massive competitors units for sale has a far more profound effect on not only ours but every other CC seller.

The SL government could flood the market with CC's and undercut anyone to gain market share.

They have nothing to lose. Its a win win for them.

Any Revenues generated are monies they never expected in the first place.

The country does have resources to plant and develop at a far greater scale than us.

WE can simply expand as we can afford to. So far we just have a test plot planted.

BTW our new trees haven't likely produced CC's yet we are in the process of forward selling projected CC's from the Project.

Governments spend all the time without even needing the money in the first place.

The SL Government have far more resources available to them than us and this new deal was not designed to plant forests it was to maintain and generate CC's and Biomass from existing forests.

We are planting a forest in SL1 theirs is already developed.

The fact they even have a Minister of Agriculture attests to that.

He obviously has a budget and access to developmental funds.

Its just a matter of time before multiple sellers are willing to drop their price and we just may be one of them.

In light of massive competition we can not afford to hold out.

Perhaps we could hold out a little easier with our second or third Project but this new GG Project just turned up the heat significantly.

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