could it drop below $1?, page-6

Kentaro...it is extreme to say it could drop below $1.

8mil options going to Highland will have its price set by 5 trading days average prior to execution date.

So the lower the SP the lower will the option price.

However 5min prior to close buyers arrived which suggests there will be some buying on these dips.

Last time I did my fair value analysis for CPL it was around $2.45.

So imo 50% undervalued.

Chart wise this is what i am seeing;

CPL has in the past down some fake MACD crossovers, where it appears to rise ready for a cross then reverses course. I am sure there is a technical name but i call a fake out. Traders may pre-empt the and enter a little early and get shaken out, only to see MACD actually cross a few days later.

Trendline line from August 2010 is still intact, with todays close of $1.50. Note it did breach and close ($1.26) below this trendline on Sep 27th 2011, however the next day it opened at $1.39, a few days later a couple of retests occurred.

Close up

The last 7 candles and the MACD fake out matches the cluster of candles and MACD from Sept 2011.

Also when CPL does a MACD crossover, the SP responds like a feral alley cat.

I am betting on a reversal of fortune for this stock. But if I have timed this wrong it really doesn't matter, as it is a quality stock