The problem with CCME is that most of the longs who sold did so on a 'gut feeling' of danger from the company's silence after the first CEO response -- basically due to feeling risk was getting too high and risk-management required selling or hedging. After being so positive on the stock for so long, talking data, refuting hit-piece lies, etc -- How can one tell people to sell because one gets a 'bad feeling' with no hard data to back it up?
Thats why I made my post on the CCME board about people being 'prudent' with regards to portfolio allocation percentages, hedging, etc -- I think I even mentioned the company's silence being the reason for my stance. I had been saying such things to many people who PM'd me for awhile. It was a tough decision because at the time I was still hopeful that the company would pull through even while my spidey-sense was tingling...
CCME is a perfect example of why diversification is a must, the idea of "putting all your eggs in a few baskets and watching that basket like a hawk" is quite flawed in an environment of non-perfect information dissemination.
Unfortunately I know quite a few people who had 50%+ of their portfolios (some 80%+) in CCME, and those people got hurt very very badly :(.
-Fernando
