If we assume, for the sake of argument, that 2150p was a bit overdone, then the fall from say 2100p is about 14%. Now the IPO probably produced around 10% less than expected but CNE only sold about a third of its holding so the net effect to CNE was about 3.5%. Bombay has been a dull market recently and Thailand has added somewhat to the problem but oil prices have strengthened a little and we have 10% of a decent gas find announced over last weekend.I reckon CNE 'should' have fallen by about 5% maximum...ie to about 2000p.
That gives around 10% minimum upside from here...and we could see it move up pronto when the shorters close/are closed...
Plus Bombay actually saw quite decent large company institutional demand but poor, nervy retail/small institution demand...as CNE rises I would expect the small guys to jump in too!
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