Good for you, purple, and precisely my point. MFYS has been at or near the bottom as I see it, not "plummetting" as MFYSinterest will slant it.
If all stocks that "fell" never recovered and never rose higher than previous highs, I would have to agree that dollar cost averaging is always a mistake; however, when a stock is so brutally and UNFAIRLY beaten up as MFYS has been and when you believe that the potential gains are at LEAST 500%-1000% from here on announcements of significant revenues and contracts, you should consider MFYS as if this is the first time you are looking at the stock and how much of a gain you can get from this point. Naturally, you need to consider your own individual risk tolerance, individual circumstances, alternative investment choices or simply take a small additional risk to significantly lower your dollar costs from here. Take Lloyd for instance....the stock will have to go past $0.75 before he even breaks even.I know he has complained he had no money to buy more, but that simply was not true as all he had to do was sell a few thousand dollar's worth of covered calls against his much larger $200,000 blue chips and he would have had the free cash to add. To me, after following a stock like MFYS for over a year and a half, I would NEVER be averaged at a pps of $0.75 just waiting....especially when the pps was recently at 5-6 cents and the buying opportunity was so HUGE that even Clancy came back in!
I don't expect everyone to agree, or even most, just voicing my opinion. If DCA was NEVER advantageous, no one would do it. In the RIGHT circumstances, returns have been more than just excellent in many examples I could give on stocks I have owned.
Would you rather have 100,000 shares at $0.75 costing $75,000 in a stock that was now worth $8,000 but was poised to hit at least $0.50 to a dollar in the near term, and higher dollars longer term? Or would you rather spend $8,000 more to have 200,000 shares total at DCA of $0.375...your choice!
Disclaimer: You are completely responsible for your own investment decisions and who and what you believe on the boards.You are responsible for properly analyzing and verifying any information you choose to rely upon.
Doc
