over the weekend .. a member of the finance manila forum sent me a private message asking about my tots on cpm .. (century peak metals) ...
its more than a day already since i sent him my reply so i guess its ok to share this na with you ...
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hi XXX ...
2nd Q of cpm is better than 1st Q 2015 .. but
overall .. 1H 2015 for cpm is still a loss ... revenue is down 90% ..
income is down 170% ...
the income for 2Q is not even from its
nickel production .. it came from other income ... the group’s other
income pertains to Incentives generated from sale of nickel ore and sale
of certain type of vehicles by a Subsidiary (it only made one shipment
for the semester)
nickel prices and cpm's production should
improve for the 2nd sem if anything fundamental is expected to happen to
improve its income ..
i wont be buying cpm if id be using its 1H 2015 fundamentals
technically .. cpm's price is up 25% from about 1 month ago .. and macd and sts are up ...
if ever im thinking of buying cpm at the moment .. id buy it based on technicals ...
but it is really a speculative buy ...
id
buy small first .. using 1/4 or 1/3 of my budget for cpm ... set my cut
loss .. and add only if cpm continues to go up .. until ive used up my
budget for cpm ...
resistance is @77 ... so id be buying cpm if
it breaches 77 and closes above it ... i wont be buying at 75 since it
may not break 77 and thus start going down .. but id buy if 77 is broken
and cpm closes above it ..
AGAIN ... this is a speculative buy since there are no fundamentals to speak of at the moment .. unless 3Q is so beautiful ...
but personally ... i wont be touching cpm
good luck ..
