Today's trading is turning out to be a pivotal moment for CCP holders. The chart and the volumes are building strongly on yesterday's base.
I believe that stocks are driven by two main drivers: sentiment and substance (operational performance). Sentiment is for most stock more important than substance. Over the last year the CCP's substance has remained strong, but this was trumped by negative sentiment. The SP was undermined by a range of doubts, all of which were unfounded. People questioned whether CCP's management could deal with; a reinvigorated Baycorp, the exit of Georgia and Denver from the share register and what they perceived to be an overly aggressive expansion of PDL purchases and debt. Yesterday's update seems to put these issues firmly to bed. As far as I can tell sentiment has now firmly changed from negative to positive and there are now no substantial doubts hanging over the company.
Although the future is always uncertain, all of that negativity of the past looks like it is firmly behind us.
K
CCP Price at posting:
$12.39 Sentiment: Buy Disclosure: Held
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