Australian (ASX) Stock Market Forum

CDU - Cudeco Limited

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Gringotts Bank said:
I have a take profit level, but if it pushes hard through that early on, like today, I like to hold and see how far it can go. But I got stopped as it fell back through it. I need to study breakaway gaps.
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Personally, I thought it was gonna be an exhaustion gap the way it initially faded.

skc said:
It came down to 207 so you were close... Don't be a dick for a tick :p:
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I wasn't! Had my bid at 206!


Had been eying it since the selldown. Several false starts but this could be it
 
skyQuake said:
Personally, I thought it was gonna be an exhaustion gap the way it initially faded.

I wasn't! Had my bid at 206!

Had been eying it since the selldown. Several false starts but this could be it
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Traded this on 12 Aug when it moved 30% in a day. I sold at 157 and made like 6c out of it... and it ran all the way to $1.9 in the afternoon. So this time I had no profit target and gave it a wide stop. Did a bit better so the learning helped.

It's a wild beast alright. Wouldn't surprise me to see another run this arvo...

Edit: SkyQ, can you please remove your order to sell 350000 at 220? You are scaring amateur punters like me.
 
skc said:
Traded this on 12 Aug when it moved 30% in a day. I sold at 157 and made like 6c out of it... and it ran all the way to $1.9 in the afternoon. So this time I had no profit target and gave it a wide stop. Did a bit better so the learning helped.

It's a wild beast alright. Wouldn't surprise me to see another run this arvo...

Edit: SkyQ, can you please remove your order to sell 350000 at 220? You are scaring amateur punters like me.
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Whoops! Forgot to iceberg it. No wonder nobody was biting
 
What a joke this lot has turned in to, look at the costing, no one has a clue as to how they are going to pay for the plant, or just what it will cost.
 
Fellow traders.......what are your opinions on the CDU offer to purchase more shares at $2.50 and take up the options on offer? The fundamentals look sound yet I am questioning that $2.50 is too high when the current trading around $2. Plus the outcome of the finalisation of the credit facility has not been announced. Any feedback appreciated.:)
 
Holls said:
Fellow traders.......what are your opinions on the CDU offer to purchase more shares at $2.50 and take up the options on offer? The fundamentals look sound yet I am questioning that $2.50 is too high when the current trading around $2. Plus the outcome of the finalisation of the credit facility has not been announced. Any feedback appreciated.:)
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The ramp team has been telling us that this has been a good buy all the way down from $10, they will also tell you they have all the money they need to mine, what a joke this has turned in to, I do feel sorry for the long term holders who got sucked I by the ramp team.
 
Well, I'm almost back to break-even which is where my stop loss is set. It's a pity I didn't move my stop loss because I was up over 25% four weeks ago and the chart does show a definite turn around. I think it comes down to confidence in the management which seems a bit eccentric - the way they have put together the $100m debt deal (still not finalised) and then immediately announce a capital raising and issuing of redeemable rights with option attached. Plus copper price has broken out to the downside the last few days. Will the share price retest the 1.76 low of October?
 
Holls said:
Fellow traders.......what are your opinions on the CDU offer to purchase more shares at $2.50 and take up the options on offer? The fundamentals look sound yet I am questioning that $2.50 is too high when the current trading around $2. Plus the outcome of the finalisation of the credit facility has not been announced. Any feedback appreciated.:)
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1 for 6 issue at $2.50 with each right exercised receiving a 2-year option with exercise price of $2.50. Current share price $1.90.

So the rights is well underwater, but the option will have some value given it's 2 year life. The prospectus reckon the new option is each worth 61c (assuming their calculation is correct) when the head stock was $1.985. So at $1.90 current price (before ex-rights) the option is probably worth something like 55c... Someone with better knowledge of options pricing can probably work out a more accurate value.

So in short, there is probably little difference whether you buy on market @ $1.90 vs participate in the rights offer.
 
I'm not familiar with trading rights, but the CDU rights have started trading under ASX code CDUR. The first sales that went through this morning were for $0.10 I would have happily sold at this price except that the share registry has not allocated me my rights. I contacted them and they said they will get back to me after speaking with the account manager.

Is this normal for trading in redeemable rights to commence before they have been allocated to the shareholders by the registry?
 
tinhat said:
I'm not familiar with trading rights, but the CDU rights have started trading under ASX code CDUR. The first sales that went through this morning were for $0.10 I would have happily sold at this price except that the share registry has not allocated me my rights. I contacted them and they said they will get back to me after speaking with the account manager.

Is this normal for trading in redeemable rights to commence before they have been allocated to the shareholders by the registry?
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Some brokers are better than others in terms of processing allocations. Often time is of the essence... and a slow broker can cost you a few pennies.
 
skc said:
Some brokers are better than others in terms of processing allocations. Often time is of the essence... and a slow broker can cost you a few pennies.
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Righto - thanks. I've heard that someone else has their allocation showing in comsec but I don't. Will contact them again if they don't show up tomorrow. I expect the rights are worthless but would have been happy to sell for 10c take a few hundred bucks.

If the rights issue is only available to Australian investors, does that mean that the rights are worthless to a foreign investor - there would be no point in them buying?

This is the first time I've held a stock with a redeemable rights issue so I'm curious more than anything else.
 
tinhat said:
Righto - thanks. I've heard that someone else has their allocation showing in comsec but I don't. Will contact them again if they don't show up tomorrow. I expect the rights are worthless but would have been happy to sell for 10c take a few hundred bucks.

If the rights issue is only available to Australian investors, does that mean that the rights are worthless to a foreign investor - there would be no point in them buying?

This is the first time I've held a stock with a redeemable rights issue so I'm curious more than anything else.
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Renounceable.

You are quite correct in saying that CDUR should probably be worthless. The volume is only 5000 so could easily have been someone mucking around.

As to foreign investors - you'd have to read up on the prospectus on what it means to them.
 
I rang the CDU office 2 days ago to clarify some points. I asked when would the financing arrangement with the Chinese lender be finalised. She said soon. I asked if the Company had a plan B or C if the finance agreement with the Chinese lenders did not come to fruition. Her response was 'of course' yet indicated that the deal was basically in the bag.
Interesting.......
 
Holls said:
I rang the CDU office 2 days ago to clarify some points. I asked when would the financing arrangement with the Chinese lender be finalised. She said soon. I asked if the Company had a plan B or C if the finance agreement with the Chinese lenders did not come to fruition. Her response was 'of course' yet indicated that the deal was basically in the bag.
Interesting.......
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Holls, can you name just one time table they have kept.
 

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