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No. of Recommendations: 9
So, fellow fools, how should we be looking at the recent hefty price decline in CNS? Is this the beginning of a downtrend in this stock, or is the a perfect pullback for savvy investors to enter a postion?

Well, of course, there is no answer to this question. One persons see it one way and another person see it the exact opposite way. One person is a buyer, another a seller, or one person is shorting the stock while someone else is covering their short from $14. Only TIME will ultimately determine who is right and who is wrong.

For me, I used last weeks price decline to initiate my postion in this stock. I have been following the stock and this HG board for about six months. From what I have read it seems to me that this company has solid fundamentals with a focused management team. However, I never entered into a postion earlier because I felt like I was "chasing" the stock. Everyday it would just slowly creep upward toward $15.

I kept saying to myself that the stock went from $6 to $15 without any real pullback. So, when the earnings came out and people starting selling the stock, I became a buyer. I bought some stock on the first days decline at $12.80 and then some more stock three days later a $11.45.

I'm investing here because I just believe that this a healthy pullback in a stock that has made a nice move from $6.

Eventhough I'm a long-term investor and have no problem holding this stock for a couple of years as long as the fundamentals remain solid, I think the next 2-3 months are crucial in terms of price action. Does the stock find more buyers and head back up toward $15, or does the stock get comfortable at $12 or even lower? If it heads back up toward $15 then that means that other investor see this hefty sell-off as a great opportunity. On the other hand, if it stays down at these levels maybe the recent sell-off was the "real thing". Maybe the company isn't doing as well as we think it is doing.

So, let's keep up the discussions so that we can try to keep a rational view of the situation without getting too emotionally involved.

Dave





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