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The way I read it, the uptrend of CM seems have paused with the recent down trend of the BDI (Baltic Dry Bulk Index).
If BDI continues its downtrend, it may cause a downtrend in CM.
As I mentioned earlier....at the current DBI...the share should only be trading at around 15c-17c.
shplayer...the DBI seems to turned back after getting near to 3000 pts, what is your thought on that?
this stock is so cheap its ridiculous
how to tell resistance like that?
how to tell resistance like that?
Seems to be facing some resistance at 17 - 17.5cts level.
so far last done at 17.5c on friday.....
still remain the same..and bad post again sure....
17.5c again
i still keep the CM share fr 14.5c.....
This company has break the 17cents resistance and form a new support. I think Courage Marine's plan to venture in the Middle East do have some positive impact on this company. Chiong ah! Higher and higher!
Haha. good..maybe is the higher or maybe will go more higher...
Today close at 17cents. :)
haha. no worry....
I will wait until Q3 result is out first. Things just don't look bright at the moment.
hikitty,
At CM IPO in Oct05, it was just coming out of a period of all time high freight rates. Hence, the profit margins were very impressive...thus, when investors looked at the financials, 22cts was an attractive IPO price. Guess you can say that the IPO pricing was based on historical financial datas.
Freight rates have since come down, so it has to be expected that revenues are down and margins not as attractive as in the past two years. However, the margins decline is mitigated by acquisition of more vessels => more capacity => more revenue albit lower margins.. But credit to the mgt of CM, even with a larger fleet, they have contained their overhead expenses....which is a sign of good management. .Furthermore, they have also been actively exploring new markets (recently announced ME). With the expansion into the ME, it will be prudent to expect some start up costs..
However, note that BDI has gone up within the past month from about 2300+ to 2900+. This bodes well for CM's revenues and margins.
Until the HY 06 results are announced, I still maintain theat CM will post eps for 06 at about US2.0cts. Div is 50% => US1.0cts or S1.6 cts /sh
When CM 's fair value is reached, all the "passengers" will become too fat to walk away from "danger", heh. Its IPO price when it started trading in October 2005 was 22 cents. Eight months later, it has even dipped xd. Dare not venture a guess how many "hallucinating" (according to its prospectus, CM is run by a team with MANY years of experience) passengers have been "drowned" by now. As the DBI is unlikely to return to its peak in 2H04 and lH05, care to estimate its fair value? Still 22 cents?
haha...can walk lah...many still believe that it is way undervalued at current price!!
Don't run? How about trying to stay afloat or swim ashore b4 more sea water seeps into CM. By then, all onboard will be drowned - too late to escape as there will not be enough life buoys to cling to.
No lah, don't have to run. We want to buy at undervalued price <14c and sell at overvalued price at >17c!
Thats mean we have to run away at 16.5c....
So there are pros and cons of running old vessels!! With DBI from 3000 to 3400 CM share price should be trading around 15c-17c. To make money, have to buy below that price.