macd smicko, page-28

Do you guys have any answers for CBH's poor recent performance?

- we have LME inventories falling steeply
- LME prices rising to record levels
- CBH seems to be operating at approx 90% of Endeavour capacity, maybe more now
- a bit of M&A activity in the resources sector

Is it a wider market problem, only ZFX has had a bumper two or three days while PEM and KZL have been more subdued?

Is it because of the convertible notes being converted?
Is there some selling pressure from notes holders?

Is CBH just another victim of the current Australian market that seems to value more substantially the second, third and fourth round winners from the commodity boom such as builders, banks, engineers and other services, ahead of the actual miners who may be more exposed to price volatility?

From my long term perspective, no problems with any of these reasons for a this current price action, but I would be concerned if this was not the full story.