Over the past year, a recurring trend has emerged in CNB involving a toxic relationship between positive announcements and sell-offs. Notably, a good announcement results in a gap-up in stock price, followed by a significant downward movement in the ensuing days. The most recent example, an announcement released on 14.07.23, has already led to a 20% decline in just 8 trading days from the opening price, bringing the stock below its pre-announcement level. It appears that investors tend to buy in anticipation of good results before announcements, only to sell as soon as the stock opens on the day of the news as we have not had a noteworthy bad announcement in years.
I can only think the issue is one of the following or a combination of:
Lack of institutional investors
Overvaluation or efficient pricing
A pattern has been established and is being taken advantage of
I would love to hear your thoughts about it and what is going to change this trend.
CNB Price at posting:
$1.04 Sentiment: Buy Disclosure: Held
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