laying off 100s of employees was a way to survive through this period of low zinc prices. it had nothing to do with the merger with pem failing, it was way more complex than that.
all around the world zinc mines are decreasing output or shutting down altogether. ofcourse cbh had to follow suit. imo it wont be long before inventries are so low that zinc prices will see another resurgence.
is that the reason why punters are taking up a position in cbh at these low prices? maybe. i'm not convinced. a good indicator is pem, and that hasn't shown the same change in sp recently. or is there something bigger? it will be interesting to watch this stock this week.
finally, imo cbh is not drowning and nova star wishes to believe. management are getting through this tough period, and we will soon see who are the players that make it to the end to live another day. at this stage the punters are showing there hands towards cbh.
CBH Price at posting:
8.4¢ Sentiment: None Disclosure: Held
