Replies to post #4697 on Longwei Petroleum (fka LPIH)

[Drexion2004]

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

[faxedreceipts]

Sorry to hear that and hang in there. Things can only get better as you dig your way out.

I'm not a paying member anymore so I can't post on the CGS board and that's fine. Message boards are only a small part of the dd equation when it comes to having conviction for whatever side of the trade/investment you are on. Doing DD as best you can makes a huge difference and doesn't rely on other's opinions who have their agendas. So hang in there and keep your chin up.