<< My sale on Friday morning was based on a rational thought process, even though it turned out that subsequent developments revealed that it was the wrong move.
Today's partial repurchase, at the high of the day as it turns out, was just an emotional overreaction to feeling dumb about selling Friday. Sigh. >>
Ahh.. The thrill of the market. It never fails to create very predictable human responses. Don't worry, you are one of many. This is a very well documented phenomenom in the stock market. People who are emotionally attached to a stock ALWAYS sell at a panic low, and buy back at a higher price, only to see it sink again. Then the pattern repeats. They never sell in the euphoric stage. Their only way out of this pattern is if the company goes bankrupt. Because you see, there is always a 'blip', always a fresh new product on the horizon that will save the company.. Always that fear of missing the big move up that brings the suckers back in. This has been studied for years.
The fact is, this is the same company that pre-announced a big loss on Friday. Nothing has changed. So, while there may be blips ahead (in fact, BIG blips, maybe to 7?), the fact remains that no Iomega bull will ever sell to take advantage of the blips. In fact, they will pile in as the price rises. but the ultimate stock price will be determined by sustainable earnings. The announcement Friday reduces this chance substantially.
Good luck, I hope it turns out...
kp
|
