Paul, I really do not know if CC is in the "death spiral mode" or not. The technical breakdown of the ceiling price sometime ago, should have been an indication that something is not moving according to plans, the break in the last few weeks under the long time support at $5.25 should have indicated that something is actually long behind "plan" and the stock's reaction was in diametric opposition to the Conf. C. interpretation (everything is nice and dandy and within a year we should be selling at the $75 MM annual rate), thus a repeat of the rapid fall (if we close under $5.25) is not only possible, but likely. There are many more longs than shorts, and those guys are just back from seeing the stock at $6, and quite a number of the less zealous longs could very well pray, if it just gets back to $5.5, I am out, just as the naked shorts (the less zealous as well) are praying right now, if it just gets back to the low $4' I cover. That is what makes support and resistance areas in a stock.
Paul, you are assuming that "production is indeed imminent", but the technical behavior of the stock is clearly saying right now, "No way".
Zeev |
