China Energy Appears Vulnerable- Caution Suggested

CGYV is trading rather poorly despite some pretty awesome numbers.

There were 7 million shares that became free trading as a result of the recent registration statement.

The majority of those shares were priced at $2.18 in the $8.5 million financing.

I made the mistake of assuming the majority of those shareholders would look at the numbers and be patient enough to look for much higher levels.

As it stands today, I was wrong. A lot of these funds are under quite severe pressure today to raise cash at any cost, and clearly CGYV has been vicitimized by a little short sighted pressure.

I believe there might be as much as 1 million shares for sale out of the 7 million that were registered.

In light of the continued pressure, I would guess the stock might trade as low as $2.10 to $2.20.

Therefore, I you are considering a purchase as the stock gets cheaper, I would consider waiting until it is clear the supply is exhausted.

If you are concerned about the reversal in the stock and the pressure, sell it and get out.

I would set the SSL at $2.

One thought on “China Energy Appears Vulnerable- Caution Suggested

  1. Great post and great information. The fundamentals are still improving so the value is increasing as the share price decreases. That is an opportunity I’ll take advantage of as best I can. Thanks for the blog!

    Editor: Perhaps it is bottoming now. A couple days of caution is warranted.