After a Share Price Alert just two weeks ago on Contact Energy Ltd [CEN.NZX] where shares plunged 18c or 3.13% to $5.57c due to bad operational data and a loss of 20000 customers CEN shares have passed well below their previous support levels (see 3 year chart below) where the downside usually stops at around $5.50. Yesterday CEN closed trading at a 2 and a half year low of $5.32, a price not not seen since February 2009 when this stock started its trading trip where it has ebbed between around $5.50 and $6.50 per share.
The drops have been on much higher than average volumes.
There are rumours that majority owner Origin Energy Ltd [ORG.ASX] are keen to make a bid for the company and are mismanaging the company intentionally poorly so the share price is affected and they can come in and make a cheeky bid for the 47% odd of shares they do not already own. Its sounds an odd thing to do but nevertheless this rumour is currently doing the rounds for a number of good reasons that will remain between me and my keyboard.
This stock is looking more and more attractive everyday for the short term investor.
My last advice two weeks ago still stands to buy but with the added thought that there could be more bad news to come based on the share price drop so that could provide more opportunity for those that are patient.
Share Price Alert Series
The Warehouse Group Ltd 2
Contact Energy Ltd 3
Contact Energy Ltd 2
Xero Ltd 2
Pumpkin Patch Ltd 4
Pumpkin Patch Ltd 3
Hallenstein Glasson Holdings Ltd
Telecom New Zealand Ltd 4
Telecom New Zealand Ltd 3
Port of Tauranga Ltd
Freightways Ltd 3
Goodman Fielder Ltd 2
Freightways Ltd 2
Telecom New Zealand Ltd 2
Ryman Healthcare Ltd
Charlies Group Ltd
Fletcher Building Ltd 2
Contact Energy Ltd
Steel & Tube Ltd
Telecom New Zealand Ltd
New Zealand Stock Exchange Ltd
Mainfreight Ltd 2
The Warehouse Group Ltd
Pumpkin Patch Ltd 2
Hallenstein Glasson Holdings Ltd 2
Fletcher Building Ltd
Restaurant Brands Ltd
Mainfreight Ltd
Tourism Holdings
Goodman Fielder Ltd
Pumpkin Patch Ltd
Hallenstein Glasson Holdings Ltd
NZ Refining Ltd
Freightways Ltd
Xero Ltd
Contact Energy @ Share Investor
Share Price Alert: Contact Energy Ltd 3
Share Price Alert: Contact Energy Ltd 2
Share Price Alert: Contact Energy Ltd
Stock of the Week - Reprise 5: Contact Energy Ltd
Origin Energy asset stripping Contact Energy
Stock of the Week - Reprise 4: Contact Energy Ltd
Stock of the Week - Reprise 3: Contact Energy Ltd
Long Term View: Contact Energy Ltd
Stock of the Week: Reprise 2 - Contact Energy
Stock of the Week: Reprise - Contact Energy
Not so fast Davy Boy
Still Watching Contact Energy
Beam me up Davy
Stock of the Week: Contact Energy
MarketWatch: Contact Energy - June 2009
MarketWatch: Contact Energy - Jan 2009
Contact Energy looks bright during dark times
Share Investor's 2009 Stock Picks
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c Share Investor 2011
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