Replies to post #211 on DXI Capital Corp. (DXIEF)

[aeromac]

I just had an experience eerily similar to yours, Sumisu. I was out on vacation without a computer last week. I ended up getting filled at $1.64, which seemed terrific until I saw that it dropped to $1.29 the next day, apparently. But, anyone who thinks that they can capture tops or bottoms is a fool. Such things are only obvious, after the fact.

I don't think that Dejour is shortable. So, we are not being manipulated by the shorts. But, you often find that people who are in stocks like DEJ are into a number of speculative stocks and a lot of those were dramatically down last week. So, I suspect that some people had to sell to raise cash. Plus, the CEO says that we have/had 20% institutional holdings and they often operate on momentum related computer models, which would obviously have told them to sell. Then, if you look at the volume, it was not really that high (given the general panic). The problem is that no one wants to buy in such a market, though the ones who do usually come out very well. My congratulations, especially, to anyone who was smart enough to be buying in the $1.30's and $1.40's, I was already fully invested by then because I never thought that we would see $1.60, much less $1.30.

Bottom line - this had nothing to do with DEJ itself and will only endanger our DEJ investment, longer term, if there is some kind of complete meltdown in the markets. Otherwise, if DEJ really is a good or great energy stock, as we all hope, then even those who bought at $2.65 will come out of this in good to great shape. If DEJ does not turn out to be a good-great energy stock, then that is part of the risk we take with microcaps. You could never buy a stock with their potential and no risk in this price range. If their holdings produce as they imply that they can, we are at a large discount to future value. Would have been nice to be prescient enough to know that we could pick it up in the $1.30's, but I doubt that any of us were buying this with personal targets of $3.00/sh, anyway. Everything I see, says these guys are doing a good job. Hard for me to see how any of us lose money, even buying in the mid-$2's, with all of the things currently on the table.