Browse > Home / Fast Money / CPN: Fast Money Call is Long - Let’s Look

CPN: Fast Money Call is Long - Let’s Look

March 13, 2008 10:02 PM

One of the Fast Money guys…a guy that I have never seen before and sounded like he actually knew what he was talking about (shocking)….said long Calpine (CPN)…so I thought I would take a look.

Long term charts suggest we may have hit a bottom today…so check. It only has a 3 month history….so long term is relative…

It did close above the open….but did finish negative…but still a possible bottom signal.

Downtrend appears to be broken…I like it

It has to clear $19.50 to be long in that area…so definate caution in that area…

But all in all I agree with the call to trade this stock long here. Normally I would say exit if todays low clears…and that would be the conservative trade…but my trend lines suggest that it could reverse again just below todays low. Make your own decision on that…but it does appear the trade is long here. I would exit if it goes much below $17 or you could exit if it clears todays low…your call.

Since this stock only has a 3 month trading history, I would consider this stock a speculation play. If you want to be a long term holder of this stock and not just a trade, I would look at the balance sheet. I would assume that the balance sheet would be in great shape since they emerhed from BK and probably shed a ton of debt, but just a guess. I recalled this stock from years ago…and was wondering what was going on with the 3 month history…and they did go BK as i thought…and reemerged and have been trading again for 3 months….

The stock also says it has a PE of THREE. This is the classic example of why i am generally not a believer of PE’s. PE of 3 and it has fallen 20% in 3 months? LOL

Written by · Filed Under Fast Money 

Comments

Got something to say?