Wow, what a sad technical failure. CCU is now at bottom of 'possible' flag structure. 30c was always iffy, and 25c a technical cup bottom. Both have been belted.
Read and digest ALL of the risk factors on the back end of the latest investor presentation. Particularly the Magna note.
Couple of things from where I sit: - technically a buy entry here, 'possible' upside to 45c. - hedge book reduces future income due to adjusted hedge price (desperate, good for financiers, bad for CCU) - poor operation continues to prove more than a challenge - 40% dilution will now lose the benefit of improved grade throughput - 13c? cheap, a lack of SPP support will dictate the course of Magna I think.
CCU have made some colossal mistakes, and Magna looks set to be the eventual beneficiary on future silver price trends.
Now potentially a lost opportunity long term. Commodity prices not helping, but I still maintain silver will outperform into 2020.
PM stocks have been decimated, and caution is still warranted. Trade carefully after accepting the risks.
CCU Price at posting:
14.0¢ Sentiment: ST Buy Disclosure: Held
