"there has been a lot of speculative fear about CCU's cost of production and this last quarters production figures when we have not seen the March Quarterly report.
That means that the people spreading this information are either in the know, or are just creating this stuff for their own personal gratification, revenge or just to bring the price down so they can buy in at a lower price."
Well none of those reasons apply to me. CCUs production has been incredibly disappointing, nothing speculative about it, stating the obvious doesn't require nefarious reasons. If production had improved I would have expected a responsible management to inform a doubtful market, they haven't. I can only conclude production hasn't improved.
If production hasn't improved then the Ball Mill is a critical piece of equipment, but intuition tells me there is even more going on (wrong). The Ball Mill is still 2 months away, cash flow was such that it was always going to be a very close call.
Management started out over promising on production and delivery times. Now they are largely silent. Quarterly should be out soon, we'll see what the lay of the land is then, but I don't expect a happy surprise otherwise the cap raising wouldn't be required.
CCU Price at posting:
18.9¢ Sentiment: None Disclosure: Not Held
