Charts can only reflect the past they do not tell the future they are not crystal balls.Did the charts predict the 1.6c. If they were infallible they would have done so. These are not ordinary times so the future will not be ordinary. The lemming factor always causes a fall greater than it should be in the same way that the bull factor combined with greed causes a rise beyond reasonable value. I ignore the charts in the main and only use them to compare similar stocks for changing relative valuies.Those following charts confuse the market and cause the volatility that traders need for day by day trading for profit. In my mind they are parasitic on true investment. However I too do trade,if you can't fight 'em join 'em.
Look at CER on an investment basis. It is undervalued by multiples of its SP. It does have debt but the debt is being controled. If you wanted to establish a company that was a commercial investment property you would have to sell shares at about $1 to get the assets that CER has with about the same number of shares issued and the same amount of borrowings. Today you can get that $1 value for about 10c. So at 19c it must be cheap.
The next test is if you built the samw commercial property you would have a period of no income while the building was in progress. Then you would have to find tennants. In my experience (I have built and tennanted a few small shopping arcades) the new tennants are not all that reliable or successful and it takes a year or two at the best of times to sort them out and end up with good ones. So here is another value that CER has. It is goodwill. It is a valuable asset and not allowed for in any property valuation.
By any stretch of the imagination CER has much more value than its current SP. I have said before and I'll say again "the day by day SP matters little for the longer term investor. Without this recession I would never have owned a million shares in CER as part of an investment portfolio. But please DYOR ( and if you come up with something different please speak up. But dont just say "it will sell at xyz without givind a b#*^# good reason.)
CER Price at posting:
8.6¢ Sentiment: LT Buy Disclosure: Held
