+0.08 (8.60%)
Since my last post, CNIT has had some pretty interesting days. Here's an 30 minute chart of the past couple of weeks:
In my post from 9/29 I predicted that if the stock breached below the $1 mark, it was entering dangerous territory that could send it much lower very fast. This materialized as CNIT hit $0.75, a 25%+ drop from the 9/29 close, just a few days later. Of course, the market wasn't helping and small caps were dropping like flies as investors fled risky assets, but CNIT's 25% drop was definitely a scary sight. Maintaining a price above $1 is important both for psychological and technical reasons but is also important to avoid potentially getting delisted from a major stock exchange like the NASDAQ (I wasn't able to find a definitive answer on the requirements for CNIT on maintaining its listing - anyone have that?).
The past few days have been great for the stock, as it has recovered to finish today on its HOD at $1.01, hence just above $1. This is without the help of the repurchase program, which could kick into gear if the company decides to start repurchasing shares (should be a killer deal for them at this price).
In other news, there has been...little news about CNIT in the past month or so (since the announcement of the stock repurchase program being extended). They say "no news is good news" - I'd like to hear something though ;)
As long as the economy doesn't break down, I have great faith in CNIT's ability to rebound from this area. I am considering reentering at $1.05-1.10.
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