CNQ update

cnq june 2012 scnq aug 9 2012

We refer to our blog of June 22, 2012. There, despite our long-term bearish view on this stock, we pointed out that a tradable bounce would likely occur after one more push down. We got the push down and this stock could easily have been bought at $26. We were expecting a rise to possible $35 (the top of the wedge). The stock reported today, they are cutting capital investments and raising the dividend. All is therefore honky-dory. We would not wait for $35 however, $32 would be just fine, a little above today’ high. $6 out of $26 is 23% in less than 2 months. If using a stop-loss, most object to doing so for some incomprehensible reason, one can wait a little longer.