CAI - General Chat, page-5

Hey Load. What we are experiencing at the moment is the overruling mechanics of a market. Stock specific fundamental analyses means nothing at present. As I type, all markets and all asset classes are being sold off. Perhaps it turns around tonight, perhaps it doesn’t. There is no way to predict the level of fear in the market and whether it will continue or subside. Those who bought high on euphoria and borrowed to do it will sell. Margin calls are being triggered. Those who still have profits will take them and sell. Those who can offset a tax profit for a tax loss will sell as it is nearing June 30. Those who are scared will sell. Typically, after a euphoric rise (when people talk about buying a Ferrari, predicting the stock price to double again after tripling in price, buying share for no other reason than to satisfy an ego) the market will crucify the punters and those late to the party and flush them out. This may well be the test of “who invested short term money in long term assets” or “who can stay liquid long enough”. This may well be a flush out of who shouldn’t be in the market. Unfortunately, we will need to find a bottom, before any recovery can commence. Whether we have already seen it, or it is still to come at a CAI share price of 60, 50, 40 or even 30, only time will tell. Typically, those who buy at or near the top are incredibly good at selling at or near the bottom, as they invest on emotion and recent biases. I try and do the opposite, hence my name Contrarian4me. Ie if everyone is buying, I’m selling. If everyone is selling, I’m buying.
And remember, it takes balls of steel to catch a falling knife! In my opinion, Fundamentally, this stock was a sell at $1, a hold at 70 to 99 and a buy at less than 70.
Fundamentally, CAI are a good company but doesn’t always matter.