PRQ Progress Energy

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Unfortunately we did not look at this stock at all. Now that it seems to fast becoming instrumental in formulating our national energy policy it is in the limelight together with Nexen. The charts show a recent (last 3 months) doubling of the stock and then some, almost back to the double top level. Frequently we have expressed the opinion that one should always sell around double tops. In this case that was made even more evident by a superficial glance at the RSI and MACD and the sheer size of the run-up on the announcement. Canada’s government has traditionally favoured the monopolistic/oligopolistic business model as it allows government to keep a hold on the business. Now that free trade and globalism are slowly gaining ground in the real world it is not sure what to do with its “significant benefit” criterion and decisions are made willy nilly. If the deal is completely dead, which certainly is not yet clear at this time, the stock should move down to where it came from. The p/e , by the way, is above 40.