and it just recently came out with an effective profit downgrade. It will take time for the market to gain confidence, in the mean time why will the market 'bid it up' whilst the downgrade is still fresh in the minds of the market.
In addition the price has fallen under the $5 support level which just encourages selling from those who closely monitor the share price trends.
In addition the market as a whole is expensive, and the market knows it. So the market is thinking why buy into a share in a downturn in an expensive market (when the market corrects, it will just further push down those shares in a negative trend anyway)
(These are my interpretations of the markets current psychology on the share, not my own views on CGF valuation).
So I am patient, also my own future valuations on CGF depend on a stable underlying investment market. If markets drop significantly, risk goes up, risk goes up the effective value of CGF investment goes down (increase in risk premium).
So whilst CGF screens attractively at current share prices, I wouldn't call it a screaming buy. Happy to have it as a small part of my portfolio, but not chasing the shares, not until prices drop significantly that I gain a greater margin of safety.
CGF Price at posting:
$4.79 Sentiment: None Disclosure: Held
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