CMQ 0.00% 8.3¢ chemeq limited

The company put out an announcement tonight, reaffirming...

  1. 873 Posts.
    The company put out an announcement tonight, reaffirming previous announcements (about the production facility going ahead etc).

    Technically, however, CMQ is looking bad. It broke a resistance level at $4.86 today, and closed at $4.75 after hitting a low of $4.65.

    A bounce should be in order soon. It may happen tommorrow as a result of the co. announcement tonight.

    However, now that a key resistance is broken, it looks as if CMQ is headed for lower levels - perhaps filling the gap at around $4.20.

    The market is waking up to short term realities about CMQ. Although the global "market" for the polymeric product is stated to be $9 billion, the CMQ's production facility can only supply 0.25% of this market
    ($22.5 million or 20 tonnes/annum by my figures). Of course this is potential revenue only, and is contingent upon a number of other things going "right" for the company.

    These is are hard facts which cannot be ignored. Especially so when the market cap of this stock currently stands at $420 million, with $0 current earnings/revenue.

    Be very wary about buying at these levels, despite what the usual biotech rampers on this forum will say....

    $4.20 - $4.30 will come in my opinion.


    Thoughts are welcome.



    Cheers,


    Christian
 
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