This is a common misconception that seems to be fading as investors become more sophisticated.
And there is no loss if the stock is not sold at a loss.
The loss is real and unrecoverable. A simple exercise demonstrates the loss.
You have indicated that you currently own 4 million shares. Over the course of months you have accumulated these shares at various prices with an average share cost of .0058. You therefore have spent $23,200.00 for your position.
At the current pps of .0044, an identical position could be obtained for $17,600.00. (Even cheaper earlier in the week).
The difference between the two is $5,600.00. You have lost 24% of your initial investment and you can't ever get it back.
Realize that even if the pps returns to .0058 and you reach a break even point. (zero loss, zero gain) the 'other' position would be ahead by $5,600.00. Again that is money you cannot recover.
The pps may recover, you may even realize a profit (doubtful) but that profit will always be less than it could have been, due to the unrecoverable loss of the $5,600 dollars.
Additionally every movement that the pps makes in a downward direction, costs you more unrecoverable losses. As has been reiterated countless times (and is gradually sinking in to the investment community) averaging down is a fools game. Much wiser to wait for the possible uptick with your money in your pocket and buy in after the rise begins, knowing you can always get in before the pps reaches even your break even point.
The potential upside far outweighs any potential loss.
As explained, there is no potential loss. The money is gone.
regards,
frog
