totalljones, I urge you to re-read my post. I was referring to the timeless phenomenon of a market undervaluing an asset and then realizing it later and "catching up" with fundamental valuation. This was a response to a query on how cheap China growth stocks might reach higher valuations. I did not say anything specific to CCME; you added that...
I've been investing and trading for a while now, and I can assure you that the market can be irrational for quite some time. My favorite example is BBI and BBI.B -- for years, BBI.B traded at 50-70% of the price of BBI, yet they represented identical stakes in Blockbuster. The point here is, don't assume that the market is rational, or that it will become rational according to any specific timetable. In my view, that pretty much precludes using any margin unless you both diversify and use stop losses.
If you didn't find my psychological analogy relevant, I urge you to put forth a better one.
