Slinky ToyOne theme has persisted in all my writing: CNL is not an investment, it is a trading stock where you can make 20% repeatedly by playing price volatility, and the future is sketchy due to Colombian "social license" attitudes that dominate permitting.
My theme today is "The Slinky Toy" and its behaviour on a downward staircase, and how that mirrors what may? happen here with CNL. Watching the trading over the past few days, it appears that the skittish fast money in CNL has bolted for the door. It is quite common for market makers and traders to try and mastermind an orderly exit to test past bottom prices, and more importantly a way to profit from bad news. What you need to be mindful of is the "
dead cat bounce". Yesterday's price bounce could be tempting you to jump back in, but it is common for stocks that drop precipitously to blip up then continue the downward price move. If $$$ is burning a hole in your pocket, and you must have this stock.... mitigate your risk. Put a stop loss under whatever you do!! And set a target price where you will sell. I am NOT, I repeat NOT, suggesting you should buy and hold this thing. I am writing here to help you understand trading psychology and the cat and mouse game that it is. You saw $1.85 recently and if you add 20% it takes you to $2.22. Stepping in here at $2.05 +/- is not appealing to me personally unless there was about 5-10M shares traded and the price close up + by .12-.15.
Classic Slinky Commercial. If you are over 50, feel free to sing along.
https://www.youtube.com/watch?v=EZL6RGkPjws