To me, CMP has always been one of the few hidden champions in Australia, similar to a lot of SME in Germany, providing specialized products with unique value proposition to a large addressable market. Given CMP's track record in innovation and product leadership, still led by its founder after 20 years and actually making profit, I have no doubt CMP is a great firm.
But,
1.the problem with stock market is that It's not always efficient. I still remember the announcement of new sales to China, a few months back. the share price even reacted negatively somehow.
2. This MEG announcement is good because it opens CMP business lines to new fields
3. CMP still has a few revolutionary products in the pipeline, especially the Somfit.
Finally, timing the market is not a good idea, because no body can do it consistently. But, what you can do is to analyze critically how much CMP should be worth (i.e. how much profit it will be able to generate in the future), then decide for yourself, whether one should buy or sell. Over long term, value always prevails. But, in short term, share price can easily be manipulated.
I am a holder from $0.1.
CMP Price at posting:
72.5¢ Sentiment: None Disclosure: Held
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