Just spent a sunny week on the Tongariro river NZ fly fishing and read the ann (which more or less said,'Nothing happening here, please move on'. I refrained from reading or acknowledging any more PM news until yesterday to make my holiday more pleasant. I now consider CCU to be a bit like fly fishing. One can land a 5kg trout on a 3.5kg leader and landing a 2kg trout on 3.5kg leader requires a bit of experience and skill. Even at the 2kg range there are a lot of bust-offs.
I consider CCU to be a good size fish which we shareholders are hanging on to with a 3.5kg line with lots of hidden dangers(because of the lack of real info on production problem)and this fish is still dragging out line(testing ones patience to hang in there) thus increasing the chance of a bust-off. Two things have two happen in this situation; one moves down stream with the fish to retrieve some line(that is sell some shares to reduce exposure to a bust-off)which I did. The second outcome is you get spooled(run out of line) and the full weigh of the fish is directly on the leader. Your only saving grace is the flexibility of the rod(Ag price) to soak up pressure on the leader. At that stage one needs some luck and I don't know where that is going to come from with this co. We haven't landed this fish and haven't even seen it surface yet, so we have no idea of its potential.
Ag price rise over $22 last night and the low sp makes me change my sentiment to a ST buy(the fish is resting and I might get some line back.
I am still considering the potential of a big bust-off.
Happy fishing. One has to have a line in water to catch a fish. For the record, 14 landed, 8 bustoffs.
CCU Price at posting:
12.5¢ Sentiment: ST Buy Disclosure: Held
