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Re: Traderfan post# 27294

Saturday, 01/19/2013 2:06:21 PM

Saturday, January 19, 2013 2:06:21 PM

Post# of 163719

And not to mention the immense overhead we will get once we go higher a bit.



Agree.

I am considering raising my position 20% in the low $.40s with the express purpose of lowering my average cost in two ways. Keeping 1/2 of the 20% long term, as "free shares" if I can sell the other half at $.80+, arguably reducing my average cost by subtracting the gain from the overall cost of the full position.

Wind up with 110% position for the same cost as the 100% position, if it works.

Downside, of course, is fundamentals might not win out, if the company's current strategies don't work.

As you say, surely many buyers at $.40 will sell at $.80. Let's just hope that they are not buttressed by new issuance into selling hands (which is the main downside for all longs).
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