I bought in many years ago on Huntley's recommendation. Lucky I sold out some time back, but lost a little in a re-enter on the decline.
The point about Huntley's recent change of valuation is all about risk. You might argue that their long term commodity values are too conservative. And they might be. But they are making recommendations so they need to be on the conservative side of things.
If you have a more positive view of long term commodity prices, then use your assumptions to give you investment comfort.
For me the unescapable fact is that there are too many other risks in this one. If there is a potential upside to commodity prices there is equally a risk of increase operating costs. And lets face it, management hasnt done much of a job managing that side of things.
The other point huntley's aptly make is this, there are significant players who have a considerable interest in keeping the price of this stock down so that loans convert to larger shareholdings. The oxide debacle is giving some the opportunity to steal a large share of the sulphides at a bargin basement price.
On the sulphides, does anyone really trust existing management to deliver that one with out a hitch?
This stock is a lesson in the failings of corporate governance. Huge amounts of free shares given to management and others, often sold to extract profit. The fact that significant holders sold high for all sorts of reasons was a real indication that they thought CMR was over valued.
If you put your money in here, you may have a very long wait for a return. I suspect there are better plays elsewhere.
Just my opinion, not a recommendation.
CMR Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
