As much as I like a bit of JPM bashing, the fact is CCU has always been subject to large fluctuations on minimal volume. I have been in and out for about 2 years, but been holding continuously since November (20c buy in) with a top up on the rights issue.
If you look at the depth, the volumes on offer are small. I would push up the SP trying to buy in the size of my holding, and I have a modest holding.
Boofet, you might say CCU's SP has done nothing since the rights issue, but from where I stand I'm seeing a 20% gain. I have yet to see a stock where the SP did not sink close to or even below the rights issue price after completion. Given the additional shares on issue, the market cap is up around where it was in March/April. The project has derisked significantly and I honestly think you are letting your impatience get the better of you. On a day where the market was down over 2%, CCU posted a modest gain. That to me speaks volumes.
That said, I am at the duration in my holding where holding on until November to obtain the CGT benefit makes sense.
I have been liquidating other holdings to take advantage of general market weakness that I expect to see in the next couple of months.
A I have posted before I believe CCU is as close as you will get to a sure thing in this market. Management has continually proven itself by delivering key milestones on time. I'm expecting a small blow out in commissioning due to having to re-site the process plant (due to silver being found under the process plant site) but even this will be a complete non-issue in 12 months time.
CCU Price at posting:
95.1¢ Sentiment: Buy Disclosure: Held
