As a large holder of CMV I've been getting more nervous over developments.
I guess in terms of the "hope the best plan for the worst" it is good to see that there is a large interested buyer for CMA in the event that it all goes pear shaped...
I am guessing/ hoping that with TPI and SIMS as possible bidders, if things get to a worst case scenario then we must be near the absolute lowest that the share price can go (15-22c per share) given the NTA and IP, etc available on wind-up... not that I think things will get to that.
I fail to see how buyers can walk away from shipments at the dock if Letters of Credit have been signed. My understanding is that with LoC's the money is effectively held in trust (or the like) and given to the seller upon delivery...??
Scrap metal prices may be volatile for some time. My brother works in HK and says that in China's major manufacturing province (Guangzhou, just across from HK) there are media reports that up to 25% of manufacturing businesses will be bust by Chinese New Year... In talking to him things may well be a lot sicker in China than their Central Government is presently admitting. Bro' says that lots of steel companies going under in China as domestic property/ infrastructure spending is way down.
Medium term fundamentals have to be good for scrap metal.. ie population growth, higher standards of living, etc, etc... just hope that CMA can ride this brief but intense period out and then reward us all !!
CMV Price at posting:
19.0¢ Sentiment: Hold Disclosure: Held
