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12/13/04 12:33 PM

#14701 RE: Toofuzzy #14699

" Since when is getting a bargain a bad thing. If you allocated $10,000 to a stock ($7,000 stock, $3,000 cash) when you use up the full $10,000 you stop buying. If you sell out at some point you end up buying high and selling low. Just the reverse of what you want to do."

Not necessarily. In this case, the fundamentals have clearly changed. The store chain is losing big money in Australia and adding debt. They have never made money in Australia. My point is that if I were the investor, I'd recognize that the stock had not played out as I expected, in other words I erred. If I still felt the stock had a probable favorable outcome and I was willing to lose all of the remaining value, I'd ride it out. Otherwise, I'd override my ego and sell.