Canadian Pacific – Update Number 3

Our last post on Canadian Pacific was on January 31, so we thought we check in on CP in terms of our model price chart.

Canadian Pacific with weekly price bars, EBV Lines (colored lines) and model price (dashed line)

For those interested, a daily updated chart of CP subsequent to this post will be maintained on Facebook, here.

As we can see from the chart nothing much has happened in terms of price.  What is interesting is where the market price of CP has come to rest.  The market price of CP is using EBV+4 as support.  This will probably be the case up until the shareholder vote on May 17, 2012.  Remember EBV lines are calculated from the balance sheet.  Also, note the volatility of the market price.  When market prices on stocks, in general, use EBV lines for support stock volatility drops substantially.

When we see a tutorial situation, like CP, we like to comment on it!

Other posts on CP.

Canadian Pacific – Time to let the stock go?

Canadian Pacific – Ackman wanting to shake up CP, Why?

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