One should be planning a strategy for selling when a substantive rally comes sooner or later.
That looks like good advice!
I remember back at the beginning of the year when CMM was a 25 cent stock, which was a shock to everyone at that level, and then the Lamaque 43-101 Resource report came out - the price shot up near 60 cents.
All I know is that doubles in share price, in a short time frame, are a nice gift and traders always say sell into the rallies. Shoot Sinclair essentially says as much with the parallel line theory he preaches.
Also, that January run up sure had the morphology of a couple of runs up at a similar time in 2007, and well, those runs also failed to hold. So selling into any CMM rally might not be a bad plan at all!
After all, even if investor sentiment changes to mild excitement over a financing deal, CMM still has to perform and become profitable before it will get institutional attention. Looks like the break even point for Lamaque isn't until the EOY 2008 so results won't be known until April 2009.
I have to wonder how certain the loans are? I'm no financing expert so I don't know if a lender would be willing to take on the risk of CMM and PK with a dubious production record in the last 4 years and PK's record of bankrupting companies. If CMM is going bankrupt, it is never too late to sell and get some cash instead of none.
So yeah, the news is already priced into the shares, but one has to wonder if bankruptcy, i.e. a failure to get the money, is a good possibility? Got any insight into the loan process and CMM's prospects?
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