CDU 0.00% 23.5¢ cudeco limited

CDU - Outlook (fictional)

  1. 5,577 Posts.
    In June the HKSE listing will be complete, production will have begun (De Javu), and a new CEO appointed by major chinese shareholders will take the current CEO's position. Most companies require a vote by board and management in order to release a dividend to shareholders. As most of current management now have an agenda outside of the company or have stated they are retiring, who are shareholders putting their faith in to hold up the current CEO's promise of dividends? The Chinese shareholders and entities now control this company.

    As soon as Chinese Major Shareholders took over management, and majority of the shareholder base the actions of management have changed from a conservative approach to production into a quick approach. Money splashed on HKSE listing. Dock and rail facilities cancelled. Capital raising after capital raising. The company now needs to raise a minimum of $80,000,000 by June with this figure likely to climb to higher values, and is raising $55,000,000 this trading halt as I post this message. Thus I ask what do long term investors hope for holding this stock?

    Dilution has been guaranteed for a long period of time which consequently will continue to decrease the share value. Sales are not being completed. Dividends are a promise made by a man who will have no power in this company in six months that has been used to keep shareholders entertained for years past deadlines. Is there any reason to purchase stock now and hold for a long term investment? At this point in time I could almost guarantee a lower share value in the next few months thus why do smart investors hold? An honest question.
    Last edited by Askari: 05/02/15
 
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Currently unlisted public company.

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