Interesting post Ipod. CNP may be a little different to the examples you gave and let me put my ideas out there to consider.
Firstly to describe CNP, it has relatively little institional activity and such its life is orchestrated by daytraders and those looking to manipulate daytraders. Some of these daytraders are quite new as well (lunchtime Gordon Geckos that are using the free internet at Hungry Jacks) so are a little more fearful and a bit more easily manipulated. Whether they be old or new, the mentality here is the 1-2c profit taking.
Now I wouldn't describe CNP's one big climb on April 2 as a bounce in the sense that you have put it. It was a feeding frenzy and putting were hovering over the sell button until they all hit it at once and we went from 65c to 50.5c in a minute. It would have gone much further if not for the trading hald. An article in Wikipedia will give some perspective.
http://en.wikipedia.org/wiki/Greater_fool_theory
In contrast, after the extension announcement in February the buy momentum was not there, but the daytraders were all loaded up and hovering over the sell button. They hit it a lot sooner then and the price closed down and kept on going down. It was like a Discovery channel documentary, with some animal eatings its own young. Very sad.
My point to all of this is how will daytraders react to a new announcement, with an extension to say 30 Sept. My fear is they will all be hovering over the sell button looking to make 5c and the first hiccup or sign of a manipulator (short seller) then we will have another pyramid scheme here. AFG and MAK are a lot more controlled with good sustained climbs and tight selling. CNP in contrast is more akin to a Benny Hill episode (god rest his soul).
Just for the record, I am still holding my shares in CNP and waiting for the announcement and would dearly love to see a $1.
CNP Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
