CFU +K4Green

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dug

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Post Number: 3609
Registered: 07-2005

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Tuesday, May 26, 2009 - 02:42 pm:

Oh have I got a Story/Scenario to GO with this one.A good example of Companies playing the Card be CFU and whatta ya know it's based in Melbourne!!

Anyway the Fibbos are set at 5 cents and not the absolute Low of 4ish because some 700 million shares recently issued at 5 FIVE Cents and I figure that's d'Base beyond Text Book.This Tripling of the Shares on Issue was mostly done by Placement to Overseas Investors with only a minimal amount going thru an Oz Rights Issue so the Chart has not been "adapted/adjusted" that much from historical levels.

Do you follow that?It's about how the IC programme adjusts for say Rights Issues but NOT Placements eg If the historic high was say $1.40,Company does a Double of Shares by Rights then the Chart would show 70 cents as High.If doubled by Placement?Chart would show $1.40 still.

This anomaly leads me to keep track of MARKET Capitalisation as an Indicator.

Please also note that this Placement has thrown out VOLUMES as an Indicator on Historic Grounds.Along with the Price Chart "warping" I reckon most Indicators MACD etc blah have been Historically say over 30 days ago rendered Irrelevant.

It's SHORT TERM and CFU is NOT a share to DREAM On and Hold thru a decline because it's KNOWN to be a DODGE.

Even 'til Jaded.

Dig for the sake of it.

whiteowl

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Post Number: 42
Registered: 07-2005

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Wednesday, May 27, 2009 - 02:49 am:

Hi Dug
I am in CFU
I got a 90% (not triple) alloc at 5c when they were near 5c
They lost their capital (and CFO) thru derivative exposure
I saw the desparate issue 'at market' at the time
Yes its Green (Brumby is going to cut some sort of ribbon)
Yes it has been $1.40 (or 70c) and has shown numerous dud spikes on the way down
Yes its likely to Fib 50 down to 15-16c
But WHO has just BOUGHT $50m at VWAP of 16c+ last 3 days ?
The new 700m at 5c is $35m so they are now soaked up ?
Was it Day Traders? Brumby? .. I have no idea
Suppose the chart will unfold
I sold my 5 cents worth and am free riding the rest

Cheers Owl
PS liked your 1.42pm snap shot of the 'top' hitting SR at 28

dug

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Post Number: 3610
Registered: 07-2005

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Votes: 0


Wednesday, May 27, 2009 - 10:14 am:

Greetings whiteowl,
I reckon that ALL the chart before the Issue of the 750mil Placement at 5 cents is now IRRELEVANT.Shows no support/resistance lines from the recent past because the shares on issue have tripled.

I come to this conclusion/"heresy" because of the reason Support/Resistance lines exist ie that those are price points where people previously bought/sold shares from a "fixed" pool of issued shares.With the "pool" vastly increased they lose their relevance.

The "Proof" of this contention is in how IC rejigs charts when Rights Issue occur.There is an Assumption that every shareholder participates and averages down from their earlier buy price so for example a 140 'old' peak becomes 70 'new' on a 1:1 RIGHTS Issue.

This is how it's done,whiteowl.I forget what the technical term for this is.

Anyhow,I'm saying that the CFU chart is only "readable" from the Date recently of that Placement.

As for-

whiteowl wrote on Wednesday, May 27, 2009 - 01:49 am:
But WHO has just BOUGHT $50m at VWAP of 16c+ last 3 days ?
The new 700m at 5c is $35m so they are now soaked up ?
Was it Day Traders? Brumby? ..

Well,it was the Former,pretty much unless by the end of the week a Substantial Holder Notice comes out seeing as 50 mil is now a 5% Holding.
Did you see the "weird" Sub notice yesterday? on a POINT One[.1]change?Totally Unnecessary it's One percent not .1 that needs advising.Probably a Typo?

Anyway,CFU has very desperate,dodgy Management IMHO.This latest announcement is very SUS.Very Pie in d'Sky.Just as well you hold by Free Carry,whiteowl but I'll chat with you later on my take on CFU future.

cheers.

Even 'til Jaded.

Dig for the sake of it.

captain_chaza

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Post Number: 4173
Registered: 02-2003

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Votes: 0


Thursday, December 03, 2009 - 08:21 pm:

Anybody got a good idea which thread on CFU is the best to read?

"While we stop and think, we often miss our opportunity." Publilius Syrus, 1st century B.C.

"I believe the future is only the past again, entered through another gate."
Sir Arthur Wing Pinero 1893

"There are two times in a man's life when he should not speculate: When he can't afford it, and when he can." Mark Twain, 1897