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Is it worth a punt?

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

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Is it worth a punt?

Hi,

I'm always on the lookout for ground floor Pharma type investments and CPH was sent to me as a 'hot tip'. I have learnt through past mistakes that 'hot tips' are for the racetrack and not the share market. I was wondering if this has been on your radar or you have any analysis on CPH after their recent purchase of a Canadian company.

Regards

Tim

Answer

Hi Tim,

Firstly I totally concur with your thoughts on “hot tips” not many people can look in the mirror and say they didn’t fall foul of this investing hurdle at some stage of their career. In the case of CPH I see no reason to be chasing this $152m NSW pharma business. I don’t have any insight here and personally I would adopt a technical perspective if I was looking to “punt” on CPH i.e. buy above 21c with stops under 13c, not very exciting risk / reward in my opinion. Too hard for me

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Crespo Pharma (CPH)
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