I watched bulls and bears on Sunday and they mentioned CPN. Their take on the stock is that it will go up for a short period of time then drop hard. They (I don't recall which one) said they would not short it at this time but also would not buy it and would sell it after the jump they believe it is going to make. If anyone else watched this and got a diferent take from it I would be happy to hear it. I am long on CPN.
I taped the Saturday morning Bulls 'n Bears TV show hosted by Brenda Butner. It was on the Stock X-change segment where the 3 usual guests were asked to expound on a stock that was one of the market's Biggest Bargains. Here is the word for word transcript of the repartee between Brenda and Tom Dorsey, President of Dorsey, Wright, and Associates; Tobin Smith, Chairman and founder of Changewave Research; and Scott Bleier, President of Hybrid Investors. Tom Dorsey was asked by Brenda what stock he had.
"Calpine, that was a hard thing when I'm looking for a stock that is undervalued; that was very hard and I know Pat, my brother, is coming through the TV right at me on Calpine. Great lookin' chart here and Arnold Schwarzenegger is now in power in California and things are gonna look a lot better. I think the stock is pulled back from 8 --37% pullback to support. Great lookin' chart, long term implications."
Tobin Smith responds. "You know, Tom, they spun off their gas property into a royalty trust. And I'll tell you, for my money, I wanna buy that trust. It's listed in the Toronto Stock Exchange now. But it's gonna be listed in the NY Stock Exchange. It's a little risky. Calpine has obviously a problem but I'd buy the trust. (Brenda says, "And you do own it, Tom." Tom says, "Yes, I do own it.")
Scott Bleier says " I wouldn't buy the stock but it's probably gonna go a little higher. It's damaged goods, number 1. Number 2, thre's a huge short position - almost 20% of the float - so that could fuel a rise. (In the background Tom says "Double demand!!") Scott continues with "And they've never lost money; through everything, the haven't lost money."
Nice to get the national exposure. Good profits will make number 1 and 2 disappear but I'll leave the interpretations to all of you. Collectively you make a pretty cogent argument for the long term success of CPN and I really appreciate that.