Posted by: ontheedge01
In reply to: lmorovan who wrote msg# 5606 Date:11/22/2005 12:09:27 PM
Post #of 13261
Excerpt:
"I am concerned about my average in this company. I just believe if you are still in it, and have a $65 to $95 average, why not look to average down. Baxa is for real lmorovan, and I am expressing an opinion as to what an investor might consider if he has the average you claim he has.
When Baxa starts distribution of the CDEX products and the share price goes to $2 or $5 or $10 dollars, what has your buddy whose average is at $65 to $95 gained? Only a little less overall loss. But, if he considers investing a little more money because of the Baxa news, maybe he brings his average down to $3 or $5 or $8 bucks."
OOPS again Edgy!
Sometimes investing more money means losing more money!
"Average down" be damned!
Maybe if instead of investing more money, the advise should have been to liquidate your investment entirely and take your tax write-off. The write-off would have saved an investor more money per share than the stock is currently worth.
If the investor sold at 1.20 and wished to buy back in NOW, they could have more than tripled their position if they reinvested, or equivalenlty, averaged down about 66%. That is how to average down without risking more money and taking a nice tax break as well.
Be careful who's opinion you consider "good advise".
AI
