CPNE.OB

[mbaugh]

Why the big sell-off today? Did I miss something?

[anvilring]

Might not this be those restricted shares coming to market??, as of the filing noted by tokyopua?

[das317]

Today hurts.  I try not to look at daily fluctuations, but this is a big one from where I purchased over 3.

[Michael]

No, paying off long term debt does not reduce net income, it is strictly a balance sheet item, much as if you issue long term debt for cash flow purposes you do not report the proceeds as net income.  They will benefit from not having any more interest expense as a result of this, so net income will be higher in the future as interest expense decreases net income, but the payment of the debt itself did not have any impact on net income. 

Hmmm.. I think David is doing too many updates these days or maybe we just misunderstood his comments. Anyhow paying off debt does not affect the bottom line short term and has in fact as trex rightly stated a positive long term effect.

Today hurts.  I try not to look at daily fluctuations, but this is a big one from where I purchased over 3.

Yes this for sure is not one of the best days for CPNE shareholders. OTCBB stocks are notoriously volatile so what can go up 20% one day can drop 30% the next. So be sure to only invest what you can afford to lose and do your homework!

When that is said I still have a very good feeling about holding the stock. I think that the uncertainty that we are seeing the last couple of days have to do with some of the insiders selling stocks. I am always very suspicious when insiders sell stocks as nobody knows the business better than they do but you always have to put it in context. If I had started a business from scratch in my garage I would probably also like to see some cool cash after a couple of years. Now these guys sold a small percentage of their stock to an institutional investor instead of dumping them in the open market which tells me a couple of things:

First of all there are some serious money that are willing to invest in the company and second the management are concerned about the investors in the company. The timing of the sale is also quite understandable. The company has just delivered some outstanding results so this would be a time when there is enough buying interest to support the price even when insiders are selling.

I expect the company to post 12 cents earnings per share for this quarter and I am pretty confident in that forecast. This company's profitability really depends on the gross connections and we already know that they made more 90,000 subscriptions in January and even though February will probably be lower due to the fewer days in the month I don't see any reasons why the consistent growth in subscriptions wouldn't continue.

[tokyopua]

I am back in here at 2.35, the ascending trendline HAS to act as support.

[raspi]

I am not so sure.. this looks like massive insider selling and seems that there is not enough buying interest as people are questioning the story behind CPNE.. More and more reminiscent of CHID story :-(. I hope I am wrong because I too decided to ignore volatility (at least I am trying to :-)). 

[tokyopua]

I am not so sure.. this looks like massive insider selling and seems that there is not enough buying interest as people are questioning the story behind CPNE.. More and more reminiscent of CHID story :-(. I hope I am wrong because I too decided to ignore volatility (at least I am trying to :-)). 

It was experiences like CHID and GV that led me to sell above $3, but recall that CHID was a chinese OTC stock that we really had little visibility into, there were deeper issues we didnt know about.  Plus, it got to be 2X its 50sma.  That was way extended.   CPNE right now is only 18 cents above its 50sma.  Also, its halfway down the weekly candle from beginning of Feb, which is also a possible support based on usual candlestick action.  Not to mention the ascending support trendline at about 2.32 as of tomorrow.  Also, there is the fact that the long term pattern was a classic cup and handle breakout.

I admit that even all this might not have been enough to get me back in the stock, but having both David and Michael so bullish on it as a long term pick, I couldnt resist getting back in. 

[buddjas1]

"It was experiences like CHID and GV that led me to sell above $3..."

Me too, although bought some at $2.78 on the last dip.  So, now I'm a long term holder. 

I have to believe, though, that this decline will be short lived.  There was a similar high-volume sell off in the middle of October from $1.80 to $0.97.  The fundamentals appear to be fine. 

[tireslinger]

No, paying off long term debt does not reduce net income, it is strictly a balance sheet item, much as if you issue long term debt for cash flow purposes you do not report the proceeds as net income.  They will benefit from not having any more interest expense as a result of this, so net income will be higher in the future as interest expense decreases net income, but the payment of the debt itself did not have any impact on net income. 

TrexKerry you are right and I was wrong. Net income is the same no matter what you do with it. I don't know what I was thinking. I guess that I just could not get past the part of them paying it with cash earned from operations. Thanks for setting me straight. I am not a rookie investor it just seems that way today. Sorry guys. 

[HANDBALLJIM]

David, Michael 

Not sure if I understand the concept of why we should not average down 3SOF stock picks. If you are think CPNE is a great long term pick and if a member just signed up today they most likely would start buying CPNE today along with the rest of the portfolio. My past experiences with averaging down were almost always negative...but the great investor Warren Buffet always waited to buy a great companies stock and lower prices....almost always waited for a correction....or a sell off on negative news.  The difference for me is in the past is I might have been buying more of a terrible company. Part of the reason for my membership is that you use a fundamental type of investing...something I was not that good with. I have more technical skills...which means I would have to trade for a living or basically be in front of the computer all day to catch the stock at the right price.

So the question is do we buy more. 

[anvilring]

I couldn't help myself... I bought at the close with a limit order for 2.39 and got filled for 2.35.  Maybe my luck is changing! as usually I'm the guy who buys at the top of the day only to see things sink toward the close. I'm hoping this was just sellers looking to lock in some good profits froms the high 1.00s and move on to (what they might consider) better things. David and others have outlined the fundamental reasons for ownership here and we need to stay focused on that untill they prove otherwise.

                                                              m

[tireslinger]

  Just roll with the punches guy's!!! Tomorrow is another day. Today was just one day in a long line of days yet to come. 

[capricho]

The volitility today was not uncommon for those following this pick, but what has me a bit worried is that both the Dow and  Nasdaq seem to be overbought with recent all time highs. With Greenspan's warnings earlier today and with further warnings on the subprime mortgage market not to mention oil and geopolitical concerns (Iran) I am looking at how volitile stocks such as CPNE.OB will continue to ratchet upwards with what looks like stormy weather ahead.

With this backdrop I sold 75% of my holdings today and I'll sit on the sidelines for a while. Call me a nervous Nellie, I don't care. I'm up nearly 20% YTD so I can sit back and wait it out and lock in profits.

I am curious as to why all the insider selling today on CPNE.OB. Makes me wonder if common shareholders like us are being kept out of the loop on something.

[tokyopua]

The volitility today was not uncommon for those following this pick, but what has me a bit worried is that both the Dow and  Nasdaq seem to be overbought with recent all time highs. With Greenspan's warnings earlier today and with further warnings on the subprime mortgage market not to mention oil and geopolitical concerns (Iran) I am looking at how volitile stocks such as CPNE.OB will continue to ratchet upwards with what looks like stormy weather ahead.

With this backdrop I sold 75% of my holdings today and I'll sit on the sidelines for a while. Call me a nervous Nellie, I don't care. I'm up nearly 20% YTD so I can sit back and wait it out and lock in profits.

I am curious as to why all the insider selling today on CPNE.OB. Makes me wonder if common shareholders like us are being kept out of the loop on something.

Cant blame anyone for taking profits, and things are getting a bit tough out there. 

But can you elaborate on the insider selling?  I am not married to my shared bought today, and if there is some big insider selling I might bail yet again lol.

[capricho]

I got ahead of myself in assuming insider selling, but I do smell something wrong when the stock plunges so much with no news announcements and of course the first thing I think is insider selling, as Raspi above also alluded to.

I made a previous post about the fact that customers really don't have much good to say about the service that CPNE.OB engages in, and I, quite frankly, don't believe in supporting companies that have apparently little regard for its customers. One could argue that perhaps poor customer service is already factored into the stock price--as David had suggested was the case with PFSW--but for a long term prospect I'd rather support and invest in companies that treat its customers well.

And so having said that, I feel it would be refreshing for 3SOF to consider companies that not only have potentially high stock appreciation--for which we all know David is quite skilled at detecting--but have also adopted excellent customer service, and better yet, practice a triple bottom line business philosophy.

Just my $.02 worth