The company put out an announcement tonight, reaffirming previous announcements (about the production facility going ahead etc).
Technically, however, CMQ is looking bad. It broke a resistance level at $4.86 today, and closed at $4.75 after hitting a low of $4.65.
A bounce should be in order soon. It may happen tommorrow as a result of the co. announcement tonight.
However, now that a key resistance is broken, it looks as if CMQ is headed for lower levels - perhaps filling the gap at around $4.20.
The market is waking up to short term realities about CMQ. Although the global "market" for the polymeric product is stated to be $9 billion, the CMQ's production facility can only supply 0.25% of this market ($22.5 million or 20 tonnes/annum by my figures). Of course this is potential revenue only, and is contingent upon a number of other things going "right" for the company.
These is are hard facts which cannot be ignored. Especially so when the market cap of this stock currently stands at $420 million, with $0 current earnings/revenue.
Be very wary about buying at these levels, despite what the usual biotech rampers on this forum will say....
$4.20 - $4.30 will come in my opinion.
Thoughts are welcome.
Cheers,
Christian
CMQ Price at posting:
0.0¢ Sentiment: LT Sell Disclosure: Not Held
