Expo Holdings Inc. (EXPH)

[Santa Barbara Broker]

You can only dca shares for so long before your portfolio is overweight in any one stock

Important to make a differenciation here on a terminology that is being used in conjunction with the purchase of EXPH shares. DCA or dollar cost averaging of EXPH shares would be the purchase of a fixed dollar amount of Expo Holding's shares at regular intervals in order to create the total one wished to hold with the minimum possible disruption and fluctuation due to market and economic conditions affecting their price. Averaging down which is what has actually been happening in many held EXPH share purchases, is when the shares were bought at or near the top of an EXPH PR induced P&D and then additional shares of the company were bought as the PPS declined. Hoping that the purchase of larger and larger numbers of shares at lower and lower prices might make up for those shares purchased at a price that will likely never be seen again. That is how one might find themselves holding an inordinate amount of EXPH shares and in serious trouble with them, not through dollar cost averaging. Of course there is no method of obtaining Expo Holding shares as an "investment" that will likely ever pay off unless 1) they are given to you free or 2) they are sold to you in a "P/P" prior to a P&D or at a huge discount in exchange for cash Expo can use to make up for their horrendous losses.

Expo Holdings, Inc. has demonstrated beyond any reasonable doubt that management is in this thing for themselves and not their shareholders therefore DCA would never be used as a sound method of investing in this company. Averaging down may work when shares are purchased a few hundreths of a cent too high, but when many shares of Expo were purchased at much higher levels and the company has now been exposed for trading in pump and dumps, odds of averaging down working are nil. IMHO.

SBB