That is right for fund managers - they are risk averse and do not sully themselves with the speculative end of town normally.
However, this is a speculative stock, and speculative stocks draw speculators.
The news that came through should have driven at least a modest rise under normal circumstances. That it hasn't I believe is tied to one or more of the following:
1. Market forces - however many stocks recovered easier to their pre Jan 22 levels. The ASX is still trading at about the level of Jan 21 however so there is still a lot to recover. We're currently sitting on a little less than 38.2% on the Fib retrace from the Jan 7 decline.
2. CVI technicals - the chart looked abysmal until Feb 5 and is looking a lot more interesting now, with the price dropping from a high each day but steadily ratcheting up like the little train that could. Buy signals are now being triggered however.
3. "Nefarious forces" - isnto's, large holders, HSBC, Angolans etc - someone is making sure they can accumalate at these levels because the fundamentals are so strong.
In my view, it is a combination of the three - I'd say a 60/30/10 split, simply because the market is allowing people to be scared off to protect their capital.
CVI Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
