Elementary knowledge indicates almost all companies have debt,not to mention governments and individuals. Until recently Ford had hocked everything it owned and still has huge debt-yahoo has said 126-132 billion(though I think that is high-can you imagine the interest on that?).
Difference is Ford is getting $16.70/share on speculation of a continued turnaround. That's a share price 5387 times CWRN's current price!!!!! So you have to figure that into your RISK/REWARD ratio.
There is arguably less speculation w CWRN,given all the necessary equipment is in place and we have pictures of possibly 2 shiploads of crushed ore,w the finer ore presumably already magnetically separated.
So at CWRN's low prices,we have a greater reward in relation to risk ratio.
We know there's a very hungry market for CWRN'S product(which has tested at 59-63% iron even without the separator-62% is considered prime) and that the newly arrived separator,which was tested by the manufacturer,can,at full capacity,process 32000 tons every two 16 hour days(a shipload is 35000). Then its merely a matter of trucking to the port,which is not rocket science.
If people take an introductory accounting course, it is not the amount of debt that is important. It is the ratio of debt to equity,including current assets to current debt,and ratio of debt to cash and revenue.
When revenue starts rolling in and people figure out that the annual revenue will be at least 13 times above the current market cap,as midtrans has pointed out,investors will be pouring their money into CWRN.
You would think somebodies clients had filled their orders by now,but I guess not.
They don't assign the head waiter to CWRN for nothing!!
They do so because the head waiters clients can't find a greater reward to risk ratio!!!!!!!!!!
I'm creating a new post here to address detractors repeated questions about debt etc rather than replying directly to the post because some say snowmen get a bonus for every post that directly replies to their posts-plus direct replies effectively reposts their post.
