"can someone explain how we are close to an 'upward breakout' when its unlikely that there will be fundamental news for atleast a few weeks."
Ill try to explain for you. For starters i used the term "upward breakout" rather then "downward breakout" as the chances of an upward breakout far, far outweigh the chances of a downward breakout. How you may ask??? Well if you have been a follower of MHM for as long as some on here you will have in your notes a list of possible positive annoucements that are realisticaly able to come out at any stage now. Im not going to list them all cause its been all said on here before if you look back and research. Also if you are able to read a chart you will noice the triangle formation that the share price has been trading in quite nicely, it shows great consolidation, support, resistance and a number of other more technical things that really dont need to be said at the moment.
Once the share price fills that triangular formation 9 times out of ten it will break out in either direction. We still have another 1.5/2 weeks before it is complete but may breakout prior to this if required.
This time period also about the time we can expect an update on certain things in the balance.
So now lets talk about a downward breakout. This is very unlikely due to a number of things but not impossible. What may cause this to happen??? Possibly any further delays to pond application which would have an impact on sp but it would be very minimal, the plant burns to the ground, lets hope that doesnt happen but it is insured none the less. Well thats pretty much all i can think of, so you can see the chances of an upward breakout in the near future is most likely.
What is the downside though?? Well if your silly enough to take last quarters cashflow report as any idication to what this quater is going to bring then your very foolish. There were many reasons why revenue was down but i dont mind sacrificing short term revenue for long term gain. In case you dont know what im talking about it was because the plant was being upgraded and also the left field instalation of the NMP technology which will add a significate amount of revenue to the company. Mind you this tech was not expected to be fitted for a long time yet but its good to see it installed, it just means more profits once in full production.
Why isnt the plant running at full potential??? The fact that the amount of excess salt water that the plant will be producing obviously has an impact on current opperations as the plant would need to be "slowed down" to allow for the issue of currently dispossing of all the liquid till the salt ponds are constructed.
Thats why this annoucement about council approval and pond construction is so important to get the ponds up and running asap.
Now any one who thinks that its current market cap is not justified needs to look at the profit the gellong plant will be making per year once up and running at full potential. If you understand the company, the process and the profit to be made off just the gellong plant then we would not hear pathetic comments like "the market cap is heavily over priced". The market cap is currently undervalued when looking at the profit the company will be making by mid year, but that will be factored in, in good time.
Im proberly going to sound like a broken record but what part of overseas expansion dont people understand. Its not an IF or a BUT its when this happens the plants over there will be producing multiple times what the aust plant does which means what???
MULTIPLE TIMES THE PROFITS.
End off story. If you dont plan on dieing any time soon then the only safer place to put your money is in the bank. Mind you it would take you about 1,000 life times of interest to make what MHM could make you in the next 2 years.
Hope that helps answer your and others questions.
MHM Price at posting:
$1.04 Sentiment: LT Buy Disclosure: Held
(20min delay)