JoeGambler
You are probably right in suggesting that the sell-off may spring from funk. Whatever the reason is, I think it is unrelated to how CCPs business performance is going to transpire.
I thought of insto selling, because that often occurs for reasons unrelated to performance – e.g., rebalancing portfolios for various reasons, and currency exchange rates. Some years ago two US-based pension funds exited the CCP share register concurrently, which depressed the SP. I think their reason was that the high $Au value relative to the $US (because of the mining boom) was expected to decline, which it did, so the pension funds had a sound reason for selling.
I am neutral on the affect of the rate of interest on CCP's business. But on funk, some people, Group X, have a proclivity for fear, and others, Group Y, know that, so their reactions exaggerate the affect. The SP manipulators, Group Z, may fan the fear to profit via shorting, or by acquiring shares at a low SP.
Group X tends to think in binary terms, rather than in shades, so if the US Federal Reserve Bank raises interest from zero to half a percent, and that is expected to flow on to interest rates generally, and thence to stock prices, and thence to CCP's share price, then Group X sells CCP, and/or refrains from buying. Group Y follows Group X, and Group Z stoke fear when it suits the agenda. This is the “butterfly effect” where the flap of a butterfly’s wings might ultimately cause a tornado, except “might” becomes “probably would” in the minds of Group X.
As a long-term investor, I ignore what groups X and Y think, and what Z opines as an influencer, unless I fundamentally concur. My major CCP-related sentiment is to hold what I have in my SMSF portfolio, and dabble with what I hold personally, provided I have funds. I had hoped the SP would stay below $30 in recent days, because I have various interim dividends coming in about now.
When Covid hit the scene in 2020, many thought that CCP as a business would suffer, and even Management panicked, and indulged in a shareholder-damaging CR at $12.50. I hurled everything I could at CCP at an average price just above $12.00. What I bought for my personal account was 3,000 shares at the average buy price of $11.815, which cost me $35,445. I sold those shares on 19/1/22 (1,000 x $35.32 + 2,000 x 35.62 = $106,560). My SMSF still holds the 2,400 bought via the CR at $12.50.
This above bragging does not tell you of my investing disaster in another poverty stock, TGA. The differentiator between the two was, IMO, the authority and competence of CCP's chairman, Don McLay, and the competence of its CEO, Thomas Beregi. Don has recently resigned as Chairman, but the success of CPP since the duo took over a sick company in FY2009 is so patent, that CCP's core business tenets will survive for years to come, IMO.
(20min delay)