They say timing is everything. My timing was off, but not by much on this one. CPNE busted through my $2 price target today. I thought it would get there in 2006- better late than never. 30 days is nothing in the whole scheme of things.
Like PNWIF, I would not be an aggressive seller of this one. The stock is behaving as if something very positive is going to come out of the company, and I would hang in there to find out what it is.
Here’s your chart:
This is a weekly chart. As you can see, the previous all time high was set in February of 2005 at $1.945. As I write this today, this stock is trading at $2.07- a clear breakout.
Fundamentally, the stock is worth $4, hands down, if the company can continue delivering the numbers and growth it has delivered in the past 3 quarters.
I have a high level of confidence CPNE will deliver good numbers in Q4 ’06 and Q5 ’07. I don’t have much visibility beyond that.
If you feel you have to sell some, don’t sell too much. This could be just the beginning.
Comments and questions and self congratulations from believers are welcome.
Why do you think the stock went up today ?
I did not see any news coming out about it.
Editor: Something has changed- I’m not sure what, but I wouldn’t sell it. This thing could go nuts.
Yes timing is everything. I have been away from the computer for a couple days, and apparently had not canceled my sell order at $2.00. Guess what? Came close to doubling my money, can’t complain about that. If it ever comes down in price I’ll probably get back in. Thanks for bringing this to everyone’s attention.
Mike
Editor: This thing could go crazy. Watch out above.
I commend all long term holders who hung in there. Thanks OTC Journal for follwing this gem.
My question is why now?
CPNE did 7 cents earnings in the 3rd Qtr, 4th qtr may be 50% higher. So most investors know that the earnings will be great.
Or is it because of the launch of their software solution website http://www.Interaccurate.com
Or a possible Merger or Aquisition?
Maybe moving to a NASDAQ listing…
I give up……..Any ideas?
Thanks
Skip in Tampa
Editor: To me, the stock is behaving as if something is being done about the massive excess supplies from the early financiers. That is just a guess, but that would be my guess.
good job on calling this stock. You really held this one close to you. Congratulations are in order. I believe we are not finished with this stock either. I believe a very big power play will be coming within the next couple months. We will see
Editor: I agree- I am hanging on to a pretty big position despite the huge profit.
Stock ran up with high volume. I believe all the positive signs are there. Thanks a lot guys.
Editor: You are very welcome. This is a very satisfying turn of events after sticking with this one through a miserable year.
Interesting day today. After the initial bout of profit taking, or selling into strength and putting it down to $2.18, the rest of the day it spent climbing back and declining volume. In fact, the volume almost disappeared in the last hour. Very few trades. My view is that such action is a positive with a likely consolidation here for a while and then another large move when the results are published. Comments welcome.
Paul
Editor: Stocks never keep going straight up. They can either correct and give you an opportunity to buy cheaper, or they can trade sideways for a while with diminishing volume, waiting for the next volume surge to take them higher. The volume dry up is the key. I am hearing fund managers who couldn’t buy this stock before are piling in now that it has eclipsed the $100 million market cap level.
Ditto that thanks from me!!
Its been a great ride – a rollercoaster ride at times – but in the end we hit and past the $2 mark.
Great work!
and thanx again….
i know this question is probably pure speculation (fancy word for guessing) … but everyone has their eyes on the next quarter outcome being spectacular and a subsequent share-price boost.
What are the odds of the same thing happening as the last spectacular quarter: a sharp plunge?
Editor: I would say less likely as I believe the “stupid sellers” have been able to load up their bank accounts, and there is more support for this stock now from the institutional community.
Guys,
Based on current valuation, I can’t see myself selling below $10/shr. If you are atrader, do whatever you have to do. But I would like to make money the easy way (i.e. buy and holder until I think is way over valued)
Editor: Thanks for the comment. I’m not sure I agree with $10 per share, but you could easily be right if the current trend continues for a year or so. I think there is better than a 50/50 chance we will see this stock in the $4 to $5 range.
I tend to agree that this can be a $10 stock.
If earnings for 2007 can be 28 cents per share using a 40 times mulitple, you have a $11 stock. I am basing my earnings on the 7 cents per share earned for the 3rd quarter 2006. I am assuming no earnings growth will occur from the 3rd quarter 2006 earnings because any pre-tax earnings growth will be offset by taxes.
I believe $5.00 a share should be fairly easy if earnings for this year does not change.
Editor: As I have stated, I have a high degree of faith in the corporate performance for Q4 ’06 and Q1 ’07. I can’t really see beyond that, and I believe $5 is in the cards if the numbers come in as I think they might.
Nice call on this stock! Nice run again today too! What is your new sale target please?
Editor: I believe it will now probably go to $4 pretty easily. However, that will not prevent me from selling some on these big, spiky runs. $5 is certainly in the cards if you can wait for Q1 numbers- early May.
well THIS was a nice day… over 3 dollars!!
yay.
kinda makes up for those 1.30 to .99 cent drops we had…
said it before.. will say it again:
thanks!
Editor: The beauty of this one- it’s not just a hot sector fluke- this one has the fundamentals to sustain higher levels and bring in real institutional players. Congratulations for having some patience.
OH my god, this is getting so exciting….I just want to scream, a buddy of mine bought 50,000 shares at 1.02, and now his wife is so happy, they offered me a trip for two to Hawaii if it hits $5.00
Editor: Kauai is very nice this time of year. Tell all your friends to get the OTC Journal.
I have followed your advise on several of your stocks. This stock at .90 cents the first time and under .20 the second time. I happy to see one of your pick have paid off for me. Thanks Tim
Editor: These don’t come along everyday, so enjoy. Probably going to $4 or $5 on or around Q1 numbers.
When do you expect the Q4 numbers to be out. The way this is trading I can see a breakout of over $3.00!
Editor: And Bingo- you got your breakout yesterday. I expect Q4 numbers to be out at the end of this month or early March- it is year end so they have to do their audit and file the 10k annual report- it’s a big deal for these companies.
Is it still worth to get into this stock at this stage
I just came across your coverage within the past few days.
Shabber
Editor: Based on the earnings history, this stock is just being discovered by the market. Most investors believe it could go a lot higher. I sell a little bit of our holdings every now and then, but I have been in this and writing about it for over three years now. I believe the stock is going to $4 or $5. Could be a lot higher beyond that if the growth and earnings trend continue.