It's just snowballing. As the price drops, everyone assumes...

It's just snowballing.

As the price drops, everyone assumes someone knows something, the value of their holding drops or they can't stand the pain if they are on margin... so they sell.

...and it snowballs down some more, gathering speed.

There are also a number of people who bought CNP and CER expecting to get very rich very quickly and the realisation has set in that this probably not going to happen in the short term. They are faced with a tough choice.

CER can't be short sold, so these are actually people selling their long positions.

The issue here is that everyone assumes either a) the next guy knows more than they do or b) that the market is always right or c) their own valuation of the company is wrong.

I've yet to see anyone accurately value CER, professional or otherwise. They couldn't value it when it was $2 (obviously), neither when it was $1 (equally obviously), 50c nor 20c.. and they can't value it today.

So was the market right on Wednesday when the SP rocketed up? Or was it wrong on Wednesday (which destroys the whole 'market is always right theory' in a flash) and right today? Or was the market simultaneously right on both Wednesday and today and CER has in fact doubled and then halved in value in 2 days? It's nonsense in my view.