With the latest results on GPT hurting their share price we have seen CNP trade at 22 this morning , a new low , over the last hour it is now attempting a mid to late afternoon recovery which I feel might see it actually close in the green, the first time we have seen it trade in that manner for a bit. ( usually traders in direction of the market early , and then falls away in the afternoon )
It seems like a few of these fallen knives stocks like CNP see the traders buy them in anticipation of a strong market and then during the day they get sold down falling even further in the match out or last 2 hours of trade as the brokers return for lunch and traders close out their sell orders on the close .
It is like the never ending story on the property sector with bad news followed by bad news followed by even worse news, with anything with debt or property focussed caught in the post US loan defaults like a for the CNP, AFG , ABS etc , basically put they have been hammered and are on skid row hanging on to the edge.
This afternoon I however note we are seeing an bounce on all three today which is inconsistent with their trading pattern of late .
With all now better off from the post tax loss selling , bad news fully factored in , with anotyher such as GPT bad news today , the afternoon recovery opposed to further decline seems to me a good signal
I have increased on CNP to be up from around 14% to 18% of my holding , I hope the gut feel is right and the knife doesnt cut me further in a late fall as we have seen on other days .,
My holdings are ( Green ) abs,cnp,afg,ceu,pgc,vba (Red )cba,anz,bhp,tls.
CNP Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
