Loading ...Revisiting CNX
For those of you who have been here for awhile, I have been pounding the table on CNX – Consol.
David Einhorn has been the absolute worst trader in this name even though he is the 3rd largest shareholder. He began buying in the upper 30s. He recently sold a 7 millions share block at 15… for a guy who had a target of 70+ for the name, selling at 15 doesn’t really make much sense.
http://www.bloomberg.com/news/articles/2016-06-03/david-einhorn-s-greenlight-capital-cuts-stake-in-consol-energy?cmpid=yhoo.headline
This would follow how Mark is seeing energy and specifically Chesapeake as CNX is EXTREMELY levered to the price of natural gas and coal. It appears to be building out another inverse head and shoulders off of the 50 day that should get it close to 20.
I like David and his perspective and guts, but we all have our seasons of being in the fog. That is where he is now. Here is his fund:
https://stockcharts.com/h-sc/ui?s=GLRE&id=p98730258087&a=413240251&listNum=116#
You are a gutsy guy buying energy. I think it is still too early, but that is what makes a market