Replies to post #5623 on Banro Corp. fka BAA

[kgreatdivide]

Bloodbath. Bought more. Avg down. All you can do. I wish mgmt knew how mine.

[3-Stooges-Nyuk-Nyuk-Nyuk]

please don't exhaust funds you can't afford ..... i got a few more at .38....... i don't know why,, but i did.. the voices in my head said so..... my avg cost now is like .45-50 .. i can deal with the lost... I'm pretty certain i will at least get my investment back .. but at this point I'm in the pretty color of red..

[Techamental Logic]

Hi RB_79! I just saw your post. Please be careful regarding emergency funds. Sometimes stepping back and looking at the big picture really helps.

Sure buying thousands of shares now will look like an awesome move if BAA snaps back to .45...but that is exceptional risk. Personally I wouldn't risk emergency funds on that. Another way to look at it too is that if it is what happens...then why even risk anything because by risking nothing more you are simply back where you were last week.

Another way to look at it is this...this could last for a quarter or more. If that is the case risking those emergency funds has no benefit. In fact you'll be able to build the same BAA position those emergency funds would buy just by regularly buying 500 shares each week for the next 20 weeks. Doing it that way you never risk something you can't lose and would only have to pay some extra commissions.

To come full circle lets say you do risk $16,500 to buy 50,000 @ .33 shares and BAA jumps back to .45 and then it sits. In then end you took a big risk for a gain of only $6,000. To actually realize that gain you would need to sell and in the US we lose about 30% to taxes. Even if it pays off that $4,200 isn't worth the risk.