Further to our yesterday’s comments, apparently the “reason” for the spontaneous combustion over the last few days is an analyst repost from a Swiss bank. Why people read these is not clear but the end result has been that this was the most active stock on the TSE for a few days in a row. Today the stock, not surprisingly is up almost 20% (to gat the same return you have to sit on your Gov. of Canada bond for seven years!

Counting this thing there is reason to believe that yesterdays low around $2 constitutes a major intermediate low if not THE low. The 5th wave is extended so a return to about $3.50 is a definite possibility.

Less than two weeks ago we warned that this stock was in danger of falling off a cliff. The idea that provided the yield is so high that it will offset any capital losses stopped clearly stopped working. Here is today’s chart;

The decline accelerated. The stock was at $16back in 2006. This is supposedly Canada’s largest internet stock.It seems that the reality is becoming more obvious, nobody is letting “their fingers do the walking” if they can have Google do it for them.

Count wise it is well possible that the low today around $2 will be it for a little while ,so it may not be a good move to through the baby out with the bath water now.  A stop at the cliff line, or slightly below would have done wonders. They do not cost anything!