I’ve been a big fan of Cege stock for most of my adult life. I first discovered it at the 2014 Cege Stock Expo and saw the stock prices, and the general sentiment, that drove the market prices up. In fact, they were the only stock I’ve ever bought in my entire life, which was a long time ago.
The reason for this is that Cege is very much in a bubble right now. The stock price is currently 25% above the last intraday high and has been since it hit a record high in early March. This is especially concerning as the stock has been underperforming its peers in the last few months and is currently trading at a 52 week low, which is very bad for a stock that trades less than $1 per share.
I think there are two main reasons why Cege trades in such a low zone. First, the price is below its 200 day moving average, which is usually a major resistance point in the stock market. Second, the stock is being very poorly managed and the underwriters are actually buying shares on the cheap and are selling them at a loss. This is especially concerning because I think the stock is undervalued and needs to be at a minimum price of at least $2.
This is why many stocks trade below their 200 day moving average. Many analysts point out that it is usually a good sign to sell an undervalued stock when the stock trades below the 200 day moving average. I don’t agree with this, but I still think the underwriters are buying below-average stock and selling at a loss, even after the analysts have pointed out that the stock is undervalued.
The analyst’s point is that the stock is overvalued because it trades at a low multiple over the 200 day moving average. When the stock is trading below the 200 day moving average, that means its price is overvalued. The stock is also overvalued because the 200 day moving average has been below the stock price for a long time. The stock price will fall to the 200 day moving average when the stock is trading below the 200 day moving average.
The analysts are right that the stock is overvalued, but it’s also been undervalued for a long time. The stock has been trading at a low multiple over the 200 day moving average for a long time. The 200 day moving average has been below the stock price for a long time, so the company is now trading at a low multiple over the 200 day moving average.
The stock will be traded under the heading of: “Buy” or “Sell”. This is a little confusing because the stock is about the world, not the company. I see a lot of people saying “buy” and “sell”. It helps in that it’s like “buy a new car. Sell it”. It’s like “sell a new house for $4,000. Sell it for $5,000. Sell it for $10,000.
In general, I find that when people get excited about the future of a company, they are more likely to sell the stock. There is a strong correlation between the excitement about the company and the likelihood of stock sell. You can see this in the stock price chart above.
This is just anecdotal evidence of a pretty strong correlation, but I have a strong feeling that the correlation between a company’s stock price and the company’s future prospects is a strong one.