nice to see someone with some brains post on CMQ. The last 3 jokers to post on CMQ clearly have nothing sensible to say.
The fact is we'll find out what's going on on Monday.
My guess is 3 investment companies propping up CMQ are looking very very carefully at whether they should inject the next 20 million, or whether CMQ is in some sort of breach. If this were the case, they have the option to take their 8.5% interest, call back their loan and put CMQ into receivership.
I've found if a company has good news, it comes out fast. This company put out a trading halt, and told us the an announcement would come out the next day. In fact, shareholders had to wait one extra day, and the letter they put out was not very specific about what the creditors were worried about.
The real Decision-day for this share, could come Monday. But I'd be pretty uncomfortable as a shareholder until 30th September has passed.
Before even considering touching this stock, I'd want to see a lot of announcements detailing that: 1) The plant is running at 100%, 2) They've got big contracts to sell litres of the product 3) The price they are getting per litre.
Even IF this company gets its cash injections, and sells 400,000 litres of the product, the net asset value of the company + first year profits, taking into account the dilution is way below $1.10. Its more like 60c.
Having said that, the product seems to have great potential. But this company has demonstrated very clearly over the past 3 years that a great product does not make a great company.
Joel
CMQ Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
