Reading the SGM announcement it doesn't bode well for CMV in the short/ medium term - being a smaller more highly geared company (with a large outstanding legal issue to boot!). I'm getting worried that CMV may find themselves in trouble down the track with their debt burden... reading the tea leaves it doesn't sound like metal markets will pick up anytime soon and that end users of metal (e.g. Cat that just laid off 20,000 workers! or any of the auto makers) have large falls in demand...
... given this and the risk of overseas steel mills defaulting or going bust (lots of over capacity in China); zinc prices being very low; and likelihood of no Meretec plants being constructed anytime soon makes me concerned over whether CMV will survive...again imo the best we shareholders can expect is either further dilution through more cash being injected by Scholes or a low-ball take over offer (?? purely my opinion ??).
Whilst many shares are being hammered and there is an element of "the baby being thrown out with the bathwater", I'm starting to think that CMV is the bathwater and not the baby! Maybe time to retire to the sidelines and look for the babies!
Maybe watch and get back in much later IF it CMV is still standing in late 2009 early 2010..
Cheers john
CMV Price at posting:
6.1¢ Sentiment: Sell Disclosure: Held
