That strategy works if you play it smart.
I was a pre-seizure shareholder in above $4 a share and I did exactly that...averaged down on 12/31/08 with a bunch of shares at $.023
I should have flipped a few times and did not. Then, I had to sell my position earlier than I wanted to in an attempt to help save a friend's business...so I have not been in the stock since June...but I did make a profit off of a devastating initial loss. I have kept up with the board here and there, although silently of late.
I could not help but get back in this afternoon though.
I still hold by my initial projections of at least $1-$3 a share. There are too many questions at this point and I am almost smirking at the term "global settlement." They could have "agreed" to this in October 2008.
All that I have read about this "settlement" lends towards a concession of: well, we know it is our money, but we want you to give most of it back so we can pay our debts. We fought for 18 months but this is all we ever hoped for, to break even on the debt. Forget about the reputation of our name. Forget about the people whose lives were so negatively impacted. Forget about the lies, the wheeling and dealing, the suspicious late night coup. No, really. We just want enough back to pay our debts. Yes, we realize we could have just thrown up our hands and told you to take care of the debt yourself with the funds you converted from US, saving everyone time and aggrevation, but we wanted to pay them off ourselves. *rolls eyes with an exaggerated Texan please*
Not to mention, the tax credits being offered to JPM as part of the "settlement" are substantial as a stand-alone consideration and represent a near parallel of the value JPM "paid" to WM for everything they got. Common sense dictates this makes no sense.
I do not think this is over by a long shot. I am excited to see what happens next. But having awoken to a -100% portfolio in this stock once, I am not naive enough to believe it could not happen again.
Please though, to all of you on this board, remember that money is just money. It will be lost. It will be gained. Family is important. Friendships are important. Living a life of passion is important. Focus on what is important and correctly prioritize the gains/losses you make here and in the rest of the market against a touch from your spouse, the smile of your child, the awe of a beautiful sunrise/crisp refreshing breeze. Life is so much more precious than a gained/lost dollar, no matter the multiplier.
~Silk
AI
