uWink Inc. (UWKI)

[the big guy]

Quite the opposite in fact. Cool and calculating. Let's say an investor had bought 5K more shares at .52, resulting in a Personal Average Cost of 2.50. Similar to what Netman did in this case:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=31633781

and holds 120000 sh.

I have posted previously that IMO the stock is more likely to go down than up after this recent buying spree, as forecast by the Money Flow Indicator and some common sense:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=32272225

Common sense: today there was some decent volume but it did not go up at all. Weak buying pressure in an upward market. Turbulent but upward. Sucking, in other words.

So, if this investor coolly sells same 5K shares at .70, this does two things for them:

- they get an immediate cash flow of $1000, less transaction fees. This results from the difference between buying at .50 and selling those 5k shares at .70.
- they get a tax loss, which may not be immediately helpful, but can't hurt either. Read further, if the stock goes down you end up with the same number of shares anyway.

Fact is, if the stock does indeed go down they are better off than they are before. Let's say they buy the 5K back at .50 or .40. They are in exactly the same position they were in before with two differences:

- they have just gained $1000.
- they have lowered their Personal Average Cost by .09 to 2.41. Takes 5 minutes to work it out in a spreadsheet.

Trading strategy is critically important now, as this stock reaches it's true bottom or decision point. Financial instability counterbalanced by execution of strategy (building stores). Truthfully I am not sure what will happen to it, but the percentage difference between .50 and .70 makes strategy right now critically important.. yes it is good to buy low and gives you a good feeling.. but one should consider selling in a case like this and then sleeping on it. The tax loss may piss you off at first, but enjoy the $1000.. have an nBeer. You will feel better. And accepting losses is part of the game here.. that $1000 could go towards a winner that makes up for the tax loss... the tax loss will enable you to realize the profit from that without paying taxes!

btw, the loss in the above condition is $12500. The new Personal Average Cost is $2.41. Once you start doing this it only gets better...