Cielo shareholders,
My first post on this board and most of you will not appreciate it. I post to alert those who have long positions that they should be concerned. Now, before most of you start going on the attack, I Idisclose that I am short Cielo. The reasons are many however I will highlight the primary reasons.
1. The share price has been in steady decline, and today, on higher volume.
2. The share price has twice failed to hold a break of all-time highs and has been rejected.
3. The share price has failed to hold key technical support at 1.35 and then 1.25.
4. The outstanding share float ensures that any rally will be short lived due to speculators selling into the rally.
5. Delays in reporting desulfurization results are leading to legitimate concerns over the company's ability to deliver.
I predict that CMC is headed for $0.95 CDN by the middle of next week as the company will not be reporting any results until the end of next week at the earliest. There is nothing to support the share price as buyers have dried up......rightfully so as the company's silence should tell investors that they should be concerned.
I expect the company to release negative news on desulfurization which will send the stock to the $0.45 CDN level. I called a collapse in other speculative stocks, GlLXY and TRST in prior months. For those that bought below $0.50, don't be greedy. Take your gains and move on while you can.
Be wary of pumpers on this board. They claim averaging down works.....it doesn't.
Ramjos