Tom
<<Anyone with any words of wisdom, condolence, logic, prescience,suspicions, hope, predictions et. al>>
Wisdom and logic are hard for me these days and I've never delivered any short term predictions that were worth the price I sold them for. I do however have boatloads of condolences for my fellow long term holders here.
The ROB had an article on margin today. It seems Canadians borrowed an extra billion in September and are now at record levels. This may be part of the problem. When you're getting close to a margin call, it can be very stressful to see a stock falling and you start to fear the worst, especially when there seems to be no credible information from the company or analysts that might soothe those fears. It can become a vicious circle. If you don't act soon enough, you lose the ability to make choices.
I bought a new house in March of this year for possession in August and at the time, I mentioned on this thread that the last time I bought a house was August 1987 for possession in 1988. How's that for timing. You'd think I would have learned to take the money out of the market and park it in T-bills or something but I didn't. I ended up carrying some margin debt when the house closed but I've finally cleared it up and even have a little cash which probably means we're at the bottom of the market. I dumped 3 stocks this week that haven't been beaten up too badly including two bio-techs. I didn't consider letting go any of my DMX. I actually made another small buy at 4.05 today (TD saved me a nickle - I put the order in at 4.10). I previously bought more at both 5 and 6 which seemed like awfully clever moves at the time.
One thing worries me. DMX itself is a little like the guy on margin. They're running out of cash. They're hoping something happens soon, either some money from a marketing deal, or a share price boost from British approval. The longer they wait, the fewer choices they have. We run the risk of serious dilution if things don't happen soon. Management will be okay however, they have a whole pile of shiny new options to be awarded.
Dave |
