I thought $5.22 was good value last week so topped up a bit today at $5.07.
There may be more volatility and even cheaper prices to come but by Christmas I expect that these prices will be ancient history and never to be repeated.
Huntley's who have long been strongly recommending CMR had this to say today.
Unlike earlier this year, when we were prepared to buy a strong break in the market, at this time we would exercise caution. The spreading waves of the sub-prime loan crisis, driving up the cost of corporate debt has significant ramifications. At this point it is like a private sector credit squeeze. The issue is - as the tide goes out, where will the wrecks emerge? Or to use a Buffett line: "who has been swimming naked."
With our own interest rates likely to rise in the short term, there will be increased focus on the serious debt problems for Sydney Western suburbs households who entered the mortgage market at the height of their boom in 2002/3.
Our view continues to be for a 10-15% correction in an ongoing bull market, but this correction should last at least several months. We will monitor it closely.
Ian Huntley
CMR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
