Wow. Well if there was even a remaining skerrick of doubt that you are a pure chartist, that's gone now!
CHM is basically out of cash. Hopper has committed about $600k at 4.6cps, even though other shareholders are being offered the lower of this or a 5% discount to a 5-day VWAP (which is likely to be under 4c). The CEO (Jennifer Chow) and Director Leslie Chong (yes, from IMU) are only willing to chip in a lousy $5K. For some reference, Chow earned $2.69m in remuneration last year.
There was a funding facility worth roughly 2x the company's market cap, that disappeared from one Appendix 4c to the next without any explanation. IMO this has left the directors exposed to a potential class action from shareholders that purchased on the back of the prior 4c (indicating over two years of remaining funding) only to find out that an emergency capital injection and urgent capital raise (at about 50% of the SP at which they invested) would be required when the latest 4c was released.
If fact, I believe that the exposure to Hopper, Chong and Leslie Russell (all Directors at IMU) is so great at CHM, that it is affecting the SP at IMU - I think this has caused the latest leg-down from 12c to 10c at IMU even though as usual at IMU "the fundamentals have only gotten better!".
In the face of all this - and if the current capital raise at CHM fails, I believe there's a reasonable chance that they will need to tip the company into administration - the SP has indeed stabilised between 3.6c and 4.0c. To me, it has a strong stench of "manipulation" about it given that the capital raise pricing is based on the SP at this time.
If you are happy to ignore these fundamentals when assessing the current technicals, than you are the purest of chartists ....
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