While this is a great product, I believe CMQ has lost much of its credibility with large and small investors.
1) A string of announcemts saying production is imminent.
22/03/2004 Fact Before Rumour
"successful completion of commissioning in the near future"
07/04/2004 Imminent Production and Sales
"Chemeq anticipates successful completion of commissioning in the near future"
"Chemeq will begin its overseas sales programs in May."
07/05/2004 Construction Update
"drug should be produced from the manufacturing plant in 30 days"
11/6/04 Construction Update
"Final stages of commissioning"
30/7/04 Chemeq Update
"production plant undergoing 'fine-tuning'"
06/08/04 Shareholder update
"At the starting blocks"
"August 2004 - production commences"
"December 2004 - facility reaches capacity"
2) $20 Million required to build 50t plant by July 2005
Where does this money come from? Another Captial raising?
3) July 2005 - $160Million to $320Million required to build 400t facility.
More to the point, not only have they stung retail shareholders, but the 'sophisticated investors and insto's who bought in at $4.50 have now lost money too.
Next time they raise capital to either build the 50t or 400t plant.. who is going to trust them again?
I sold my CMQ shares. I was frankly not expecting such a string of cock-ups from them. I've never seen anything like it.
What a joke from them on 30th July:
"Chemeq is not aware of any specific factors that would account for the decline in share value."
How about these for specific factors:
1) Manufacturing plant cost 50% more than budgeted
2) Commissioning has been delayed several times.
3) Making several overly optimistic market announcements.
4) Never stated the 'real' situation until now.
5) Needs $10s of millions in the next few months and hundreds of millions over the next few years.
6) Only a small fraction of this capital can be supplied from product sales.
7) Has competitors with more effective products in terms of increased poultry weight (7% for IMU rather than 2.5% for CMQ). Note, IMU is NOWHERE NEAR commercialisation.
My vote on this share is down, and $2.50 is a likely target from the weekly chart.
Joel
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