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| Tuesday, July 10, 2007 |
| CAO Craze |
Who can forget the CAO scandal that broke many people's hearts? How can forget its plunge from it all time high of $8 to sub-$1?
Today, CAO has shown terrific recovery due to support from Temasek holdings and BP. Debts are mostly cleared and it has a dominance in civil jet oil in China (I'm not a fundamentalist, so these might not be accurate)
But what matters most is what the public thinks. With it going on a solid uptrend, those that kept their shares at $8 will most probably cost average. This might contribute to the reason why the buy ups have been so easily cleared. IF that is the case, the true consolidation price will come once those people have cost averaged (around $3.50). Of cos, this is all my guess, and ultimately, institutions might have more power in controlling the price.
Anyway, when many small retailers are involved in a stock, to me, it does not bode well. While the price will rise up quickly, it might blow it out of proportions, tempting the institutions to unload.
This is just my conjecture, so most probably, I will not be 100% right. Will need to see its volume distribution charts to draw more conclusionsLabels: ChinaAviationOil |
posted by Nenix @ 9:09 AM   |
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| NenixDreams Fund |
| Fund launchprice on 1st August 2006= $1
Target for 2007 = Beat STI index
Current price of NDF as of 1st Oct 2007 = $1.58
Current price of STI as of 1st Oct 2007 = $1.54
Difference with STI index is 0.04
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