With all the talk of shorting around here, it's probably worth taking an honest moment to consider the situation (as much as I don't think it's particularly relevant to the company).
You say it's risky. Well, sure, anything to do with speculative stocks is risky. I mean, if you want to talk about risk, imagine being a CPH shareholder! But risk is what this game is all about. From the perspective of a prospective shorter, you're basically saying "Is this more likely to go up or down, and if so by how much and how quickly?". At this point it's pretty difficult to imagine CPH going up sharply unless an amazing rabbit is pulled out of management's hat. Given that they've been clearly trying to do that lately, and failing, you might guess they don't have an ace left to play, because if it was in their hand they'd already have played it, so they're in a very vulnerable position. Holders are clearly getting nervous, the price is going down and it hasn't been at the current level since the brief time during the rally last year, when it very quickly went from around 3c to around 45c before almost immediately settling around 30c, then sitting relatively stable for quite a few months. In a situation like this, it's quite possible that the price could drop back down to around the level it was at before the rally, given that a) the rally was very sharp and b) the reasons for the rally were empty as we now know. So, there is a big incentive to short because there are big potential profits. It's still a long way from 13-14c down to around 3-5c. On the risk side you have to worry about a sharp rise from here - this seems unlikely; take a look right now and you'll see the sell side is stacking up at 13.5c even though this is a recent low level, so, worst case scenario, you should be able to close your position quickly if needed, and break even or close to it. It's actually quite an attractive prospect, so it's surprising that there's not more shorting going on. It does seem like there are big potential returns at relatively low risk.
Now, the case for holding shares... phew... that's the risky prospect! The chart makes a case for a return to either around 3c or 30c, but momentum, fundamentals and sentiment strongly indicate the down side. If support breaks at this point it seems likely the drop could be sharp (not a problem for shorters), while it's difficult to imagine a particularly rapid increase, unless something really big, positive and unexpected comes along.
Do whatever you want with your money, but look at the situation honestly and try not to be biased. I have no skin in the game, no plan to put any in, but I can definitely see a strong case for shorting and very little case for holding, especially in the short term, unless you are expecting a pre CR pump, in which case you want to hover your finger over the sell button at all times between buying and selling and watch with your eyes taped open, but even then, I'd be waiting for a lower entry.
CPH Price at posting:
14.0¢ Sentiment: Sell Disclosure: Not Held
