The thing with this stock is the general market is basically kept in the dark until the interim and full year reports get released. They are not a communicative company which chooses to update it's shareholders on progress with company performance between reports.
For that reason i strongly suspect it is somebody close to the company who grabbed some stock yesterday at 25c. Rumor has it is, a couple of key managers have departed in recent weeks, so perhaps they are behind this wave of buying?
Whatever the case the stock is underpriced at this level. SDM listed yesterday at a P/E of 26 times their H1 earnings, a typical level for a mining srvices stock in this booming growth environment. CHL even after yesterday is only trading at 11.4 times their H1 earnings, so the potential for an upward re-rating on a continuation of earnings growth is very much on the cards.
CHL Price at posting:
0.0¢ Sentiment: None Disclosure: Held
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