GREY:BXEFF - Post by User
Comment by
Naamkaton May 15, 2010 3:02pm
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Post# 17102664
RE: If it breaks $3.00
RE: If it breaks $3.00Finally, some reasoned postings being placed on this thread and a little less rah rah. JDOM, you're absolutely correct when you say there is fundamental value in this company (which was my interpretation of your comment that there is no fundamental problem with the company). It's just that its share price had run too far and too fast.
However, I will take issue (or perhaps its just a caution) with one thing you said. I think you are underestimating the short-term downside risk in the share price. It is patently clear to me that BXE has been one of the poster children for the Cardium play (a.k.a.: mania). There has to be (I have no way of knowing this so it's just gut) a ton of retail investors with margin. I mean why not margin to the hilt when the stock will be getting a $7+ buyout in a matter of months?
If so, there's more pain ahead. We could be pretty close to a painful blow-off. At that point, I believe we will have expunged the speculative bloom.
Regards,
Naamkat