CPNE- Busts Major Technical Level

Shares of CPNE look just fantastic today. The stock eclipsed a major technical level, and my guess is higher levels are just a matter of time.

Let’s get right to the chart so you can see what I am seeing:

cpne1.gif

We have to go all the way back to the June of ’05 when the stock collapsed. This was the first big move down as the market started to realize some of their 2005 programs were not working.

The stock craters from about $2 all the way to about $1.20 in a matter of a few days during July of ’05.

Today, a full 14 months later, CPNE has finally broken back above the level where it settled out at the first phase of the stock’s demise.

This is extremely bullish, and provides evidence to bolster my belief that the company is going to deliver absolutely block buster earnings in Q3- they will probably come out around Nov 1.

The stock can now start eating into the levels it precipitously fell through during the fateful summer of ’05.

Climbing into this area where no one wanted to own shares before is very bullish. There are never any guaranttees in the stock market, but I would be this stock is certainly headed back to $2, it’s previous all time high. Why shouldn’t it? – they have paid off all their debt and the company is generating tons of cash. The company is in the best shape it has ever been. Leadership is changing from resource back to technology. Unless the numbers turn back, there is no reason why this stock shouldn’t make a new all time high this year.

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6 thoughts on “CPNE- Busts Major Technical Level

  1. The way CPNE is moving, I think something is brewing.

    I think some good news may be released soon.

    Not sure what it will be but here are a few guesses.

    1. CPNE announces preliminary revenue numbers or

    2. CPNE announces that they applied for a NASDAQ listing.

    This stock is moving up too fast with good volume.

    With new products being developed plus a new President, the future looks extremely positive.

    I did talk with someone from the company a few weeks ago. His feeling is that CPNE will have a market cap of 200 million 12 months out.

    Also a new group of investors may be moving in. Many investors will not touch a penny stock. But once it moved above 1.00 it jumped on the radar screens of many investors

    Just my Opinions
    Skip in Tampa

    Editor: Skip- believe me- it is all about the numbers. Expectations for Q3 are climbing, and the stock will climb with those expectations out in front of the numbers. And, yes, there are new buyers materializing. Yesterday’s new multimonth closing high bodes well for higher levels. I see it at $2- a little early to talk NASDAQ. 

  2. Any idea what the new memberships were for july and augustand if they re reatining them???

    Editor: I hear the retention numbers have doubled this year, and the add on sales are growing. I can’t tell you what the new memberships were unless the company announces them, but it seems to me the stock is telling you all you need to know. 

  3. I would like to have the company tell how many members they sign in july & august.. I fax them for the information to no avail. perhaps you can find the #s. thank you –jack

    Editor: Will suggest to the company they make this public information. I doubt they would ever respond to a fax. If I were you, I would pick up the phone. However, you still won’t get the information individually- they need to publish it in the form of a press release. 

  4. A clip from the last weeks Press release.

    I am proud to announce that in just three short years, over 750,000 individuals at some point chose to become paying members of our offerings during that period.

    Now… the way I read it, CPNE has signed up over 750,000 new members over the past few years. That doesn’t mean that they have 750,000 members now. We have no idea what the drop off numbers are. They may only have 300,000 current members or 500,000 current members. There is no way of knowing without specific numbers from the company.

    To See CPNE Business Matrixes is the Key.

    Each company develops it’s own set of key matrixes to view revenue, growth, expenses.

    As for CPNE, they must have at least 12 key indicators that they watch.

    These keys are defined by the company.
    These keys may include.

    Monthly new membership signups.
    Monthly membership dropoffs/ canceled membership.
    Revenue per subscriber
    Cost of revenue.
    Expenses

    Year over Year Monthly revenue growth
    etc…..

    The press release is a little deceiving because they did not announce the number of current subscribers.

    All opinions will be appreciated.

    Skip in Tampa

    Editor: I have asked them about this issue a number of times. They won’t disclose the number of members – they say for competitive. They have disclosed that over the course of 2006 they have doubled the average amount of time a subscriber remains active. They have also made major enhancements on the revenue side on a per subscriber basis. They have made the service much more sticky. I can’t tell you exactly how many, but perhaps we can interpolate the number from the data in the Q3 numbers. 

  5. I got out when CPNE hit 0.40 and made a good profit. Now with all the good news I’m thinking of getting back in. Ugh !! it is hard to hit the buy button when you sold at 0.40 and now it is at $1.35. What is your opinion?
    Tedd

    Editor: As I said in this BLOG, my opinion is that the stock is going to $2. It is trading pretty good volume everyday, and it is only a question of time before the demand eats through the current supply. I know it goes against your grain to buy at $1.40 what you sold at $.40, but the upside is unlimited. Put aside the emotion and look at the numbers. A good strategy might be to buy half of what you would put in now, and buy the other half if it pulls back. I can’t really call for much higher than $2 before seeing the Q3 numbers, but I’ll bet they are going to be blow away.