Refer my favourite Borg quote, "Resistance is futile". You can chuck analysis in there instead. I've often thought a degree in human behaviour would be of just as much help in working the share market as if you had PHD's in economics and Accounting.
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I've got a long way to go before I even break even. However, looks like fibre uptake is increasing dramatically. Chorus is now connecting over 3000 households and businesses each month and this number is growing. All of this is helped by great ISPs like Bigpipe and new to the market Myrepublic offering Chorus' commercial non regulated fibre plans.
Edit: I see Sky is launching it's on-demand video service in a couple of months at a $20 price tag and Netflix could be here next year. Lightbox is already up and running. All of this has to benefit Chorus and fibre uptake.
If the draft in December is favorable then the FPP in April will also be favorable and the price will contiue to head north plus a divvy will also be back on the table but if its unfavourable then uncertainty will return and we all know what that means.
Finally, some reason for cheer with this beleaguered stock.
Sept 25th saw CNU get some legs and break up through med/long term resistance at $1.80. I confess to taking a gamble and bought (accumulated) early on the break through the daily 14EMA at $1.75, though with a tight stop just in case. Since then though, it has enjoyed sustained buying pressure and even popped up through the rising channel.
The price close Friday has even more TA significance, not just for the aforementioned breakout, but more so for the breakout up through horizontal support from the sickening weekly closes of Nov8th/13th 2013. See the weekly chart.
:t_up:
I'd expect for a healthy trend to continue, some profit taking should emerge about now, which if soon, would likely see a back test of support at least $2.00-$2.03, probably $1.93-$1.95.
Nevertheless, finally a nice chart for CNU. It's been awhile.
After reading through the AGM presentations etc I'm scratching my head as to why you would pay $2.10 for these shares at this point in time. The presentations show just how much of a minefield the company has yet to negotiate not just over the next few months but also beyond 2020 unless a lot more regulatory certainty comes into play.Good luck to those buying at the moment I hope you don't take a hit but I feel caution is in order but DYOR.
tend to agree ... but I guess it is at this stage probably more traders trying to ride the swell - and good on them, who knows how long it keeps rising? Just take care not to miss the peak :scared:.
Discl: chickened out recently - surfing the waves is not my thing.
I tried to value Chorus after the price fell of a cliff and the SP was about $1.40. I couldn't even justify that price and I don't think anything has materially changed since then.
Obviously any value depends on what happens with the Commerce Commission. Maybe there are a few leaks from there that are helping the price rise? Or is it just a gamble that the regulated price will rise?
Chorus is pretty hard to value because so much relies on the future price they can charge for services (which may or may not be regulated), plus the PV of the huge interest-free loans from gummint.
A bit of a risky bet for a utility.