As I have said in the past, the general market part of CBI's problem. Since CBI did not get above its 50-day moving average and establish any base above that, it remains a vulnerable stock (the company, of course, remains very well-positioned over the long run).
I would not be surprised to see CBI retest the 57.54 52 -week low, especially given any market weakness. I might buy there if it bounces off that point.
We'll need some type of news to get a bigger bounce. Longer term, there are not many bargains in this market. True bargains. If the cash flow problem gets resolved and CBI really does become cash flow positive by the 4th quarter as the CEO said at the last earnings report, then this company is obviously undervalued.
We'll see. But it will take a while. GLTA
As a small long, I possibly agree with graphicsports62, but I do believe that it will be a general market decline that will take us there.
I think the market is vastly underestimating the effect of today's Russian invasion, the possibility of a natural gas war this winter (would Ukraine ever shut down the pipeline to Europe as a counter threat?), and the major Russian cyber attack on major U.S. banks that several analysts are saying could only be state sponsored and definitely meant as a warning. We could be entering a very dicey phase.
I bought some insurance today. GLTA
I agree that a little consolidation would not be a bad thing. Look at that nice little staircase on the weekly and 10 day charts. Pop, consolidate, pop, consolidate.
Today's CBI chart looks a lot like the SPY. I still remain concerned about the overall market. Maybe the US is the only place to go, but I cannot believe that close to a recession in Europe, and slowdowns in China and Japan are not going to affect corporate profits. CBI has outperformed the market recently, but is everyone going to ignore what could be a Russian invasion in Ukraine with more sanctions to follow?
Maybe. This "bad news is good news" market has made me nervous for 3 years, and it keeps going up and up and up.
CBI is a long-term infrastructure play, and that makes me less nervous.GLTA
We got our 4 million+ volume with some heavy action in the last hour. What was noticeable was that every dip was bought all through the day.
We'll see what Janet from Jackson Hole has to say tomorrow. Traders have gotten used to her dovishness, but there was a lot of hawkish data out today, and another Fed official was talking up interest rates. At some point we are going to get an "Oh s---" moment on interest rates, whether that is now or 3 months from now.
We'll see how CBI weathers the storm.
It looks like maybe the right side of a giant head is forming with the end of that process being between 68 and 70. Then if it went sideways at that level for awhile, that would be the right shoulder. Then possibly up from there. But the wider market could have an effect on all this. GLTA
Love the volume! Would love to see a "buyers panic", where after a certain point long term holders just don't sell and the supply/demand ratio gets really tight. Then the fear of missing out takes over, and a stock gets a really good push. I'm not selling.
Also chart-wise, it could possibly develop on the yearly chart a reverse head-and shoulders with the left shoulder being in the high 60s, the head bottoming at 57 and now the right side of the head forming. Anticipate a right shoulder in the high 60s. We'll see. But that is pure speculation on my part.