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Strategies & Market Trends : CXI-Commodore Environmental

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To: Andrew Furst who wrote (383)1/23/1998
From: Andrew Furst  Read Replies (1) of 1755
 
I have a few thoughts about why COES has not quite matched the recent CXI rally. For one thing, I don't think it was ever as far down as CXI (an a % basis), so it would have less ground to recover. Also, the fact that COES is a "BB" stock probably scares some people off, including me. There is the possibility of dilution within COES which would not affect CXI, though the reverse is not true. Finally, it appears that COES sold some CXI stock recently (% owned went from 65% to 59%, I believe), which would reduce the impact of CXI's value within COES. COES might or might not be undervalued, but in any case I prefer to own CXI.
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