chm bank balance nearly all gone

Well well well, interesting that the directors of chm signed off the march 08 quarterly report stating they did not expect any further legal costs in the june quarter.

Now the june quartely report reveals how wrong they were - almost 1 million bucks out.

NOW CHM HAS $128,000 IN THE BANK AS AT 30 JUNE 08 and they still have not paid the 2nd tranche of security for costs. whoa there, this looks bad for chm s/holders.

They would have spent a bit in the last 30 days so now they have less than $128,000. They cant possibly do the case with the money running out. And they are being sued by Dick whitbread - more legal costs - wish i were a corporate lawyer.

BINGO

issue more shares - as i predicted a few months back.

AND BINGO AGAIN

s/p is rising - again predicted. chm could not succeed with this rights issue unless the sp is substantially higher than now. But watch it fall after the rights are issued.

cant see much profit for the poor long suffering punters in this play.

Best bet for chm s/h is sell chm as it gets manipulated up to make the rights issue look good, dont take up the rights issue then use the cash for a direct investment in mmx shares and possibly preference to buy equity in Oakajee Port and Rail.

so i change my sentiment selection from sell to hold BUT sell at about 5c if it gets there and reject the rights issue.