CDU 0.00% 23.5¢ cudeco limited

This schematic has been posted in several forms and many time...

  1. 46,260 Posts.
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    This schematic has been posted in several forms and many time over the years - as there have been few examples to compare its hard to accurately say All the successful Aussie explorers that have gone through to production have had their share price track this path but I expect FMG , SFR and a few other notables have tracked pretty much along these lines- As you can see from the bottom image Cudeco was also tracking pretty much in sync up until the $5 point shown on the chart.

    What happened ? well there  probably were several factors,  but unquestionably the most significant problem was M&G the number one shareholder at the time dumping their entire 34m share stockholding ( over 20m of them on market ) Why would they do this when CDU welcomed them with open arms post 2010 JORC debacle giving them 10m shares at $2 and publicly saying they were brought on board to stabilize the register and they were supposedly in for the long haul and dividends. Everything seemed rosy from there as M & G went about buying another 10m shares on market driving the price up from $2 to almost $5 in just 4 months from September to December 2010.

    What happened 3 years later in early 2013 that made them dump their entire holding ??? answer that question and we may understand why the S/P is struggling to get back over $2 - Unlike M & G the Chinese have got almost all their stock through off-market placements and have bought bugger all on market - I reckon if they also bought 10m shares on market then we may see the S/P returning to path back towards the 2006 high which is where it should be going all things being equal.

    Click images to expand click again to collapse





 
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