i have seen it all before, page-26

jaded, I can't see this going sub 10c. I feel though, in the very short term, we've fallen for the old 1 2. Every stock that i have ever been in that has had a cap raising has fallen back to the placement price. I honestly thought this time it would be different (now there is some famous last words often used in the stock market) as CVI had not named a price for these shares just a quantity of shares (50 mill) to be raised. that more or less is 20% of the company. So to my mind what is happening is that the market is reajusting the SP down by 20%. The other question is what is the market using as the previous SP value. That is perhaps a bit subjective as the SP has been moving as of late. I favour 13c as the old value because the SP has spent a bit of time there lately and because it is half way between 10c (strong support) and 16c (recent highs). Not sure if that is a technically valid conclusion but it is the one I am using for now.

SOOOO, 20%down from 13c is roughly 10.5c. And that is where i see new support.

But more importantly LET US NOT FORGET what the cap raising is all about and where this stock is heading in the medium term. This is still, in my mind a medium to long term buy. the only purpose of this post is to state where I think support will be for now and why I think that.