Thursday, January 18, 2007

Cudeco in the (bad) news again

The board of Australian copper mining speculator is CuDeco Limited (ASX:CDU) has divested in excess of $A13m worth of stock via Martin Place Securities and Bell Potter Securities. Cudeco has been in the news within the past few months for outrageous stock movements based on speculation of large copper deposits being found. Executive chair Wayne McCrae, known for frequent transactions of a similar nature, noted that the funds freed up would be allocated to paying tax on a controversial options package and the acquisition of the company that was later transformed into CuDeco. Investors are still waiting for more detail from assaying work carried out on drill samples from the company's Queensland project.

CuDeco is a speculators dream but an investors nightmare. For this reason I have steered clear of it but thought I would post this story for one good reason. It shows very poor management. Cudeco has one of the worst management's I have seen. Controversial option packages and news releases that speculate on discoveries should not be something an investor looks for in a possible buy.

My only suggestion is stay clear of this company.

Good Luck investing

No comments: