Monday, October 15, 2007

Price of CNOOC gushing too high

CNOOC Ltd. is in a sweet spot. Everything it was born and raised to be has already been pre-ordained. PetroChina can do the heavy lifting, and CNOOC finishes out the job. That's the beauty of being born son of the Emperor, or in this case, the government. The last time I look at the chart, it was at 155, well below its 10-day SMA.

Since then, the stock has gone on another meteoric launch. Today, CEO traded at 192 before settling down at 188.26. With oil trading above $86 a barrel today, it's only fitting that oil stocks are keeping pace. But CEO is too expensive for sane buyers.

Pupule says: Wait, wait and wait more.

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