cer agrees stabilisation plan with financiers, page-26

Wow interesting day for both cer and cnp opened up strongly but failed to capitalize; not that the day to day movement in sp bothers me but hey!

Anyhow I'll get into my bread and butter and that is market psychology.What i see in today's market predominately the asx is a combination of fear and greed two ingredients that make up the market.People sometimes forget that when they buy shares they are buying a piece of a business and not a lottery ticket.

If u look at the fear aspect one can turn the clock back to this day in 2007 and witness the sp volatility in cnp as investors are more likely to over re-act to bad news and and extend the bad news beyond reasoning and in turn not praising any of the good news in full.This has also been evident in our market over the last year or so when investors decided to sell out of companies when profit forecasts were better than market predictions.

This chain of events and the following the herd mentality is what has caused this market to fall deeper than required.I did though mention in the past that our market was way over priced but to come down this much is a real shame and my heart goes out to the shareholders of Commander Communications,Allco Finance and Abc learning.

If u can look past the current turmoil, one must agree that we're are currently in a "Buyers Market" and not a "Sellers Market" and what we need in cer is a lack of sellers but given the current market conditions people continue to focus on short term movement in sp; so when the sp is dropping a little they panic and start to sell not taking into account the value or the worth of their shares.. People are buying and selling shares for all different reasons. Like Swap mentioned, you shouldn't really be concerned about the day to day movement in the sp i.e. if your intention is to hold cer over the medium to longer term.

If you don't know what your shares are worth why would you even consider investing in this or any listed company on the asx for that matter.Maybe a different ball game for the day traders who only want a quick buck and then they move on, but for the medium to longer term holders its very important to understand price and value which are 2 different things.cer will eventually meet its true value but this is not an overnight process.

I strongly believe, that anyone holding this stock; will really reap the rewards in the middle to end phaze of the next bull market.Some People are too caught up to yesterday's news and not realising that we are moving fast and don't have time to waste on negative thinking.We should be preparing ourselves for the next bull market which is just around the corner imo.





cheers