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Thanks Carl, I'm sure you have the right attitude. However, I still think it makes no sense to watch a large profit in a stock dwindle away to nothing the way Dessauer has done repeatedly. He does tend to get very personal about his stocks. ("I know Wally over at Comshare, and I know he wants to retire soon, and all his money is tied up in Comshare stock, so he has to get the stock price up!") And like Wren, I averaged down on CPPKY and FFS. I find it baffling that Dessauer would sing the praises of FFS at 9, 8 and 6, and then say nothing, not a word, when it falls to 4, 3 and 2. If it was a good buy at 9, wouldn't it have to be a table-pounding steal at 2? Regarding CD, Dessauer first recommended it (I think) at 24 after it crashed with the announcement of the accounting fraud. Interestingly, David Kadlec in Time magazine at the same time used CD as an example of a stock to sell (at 24). His reasoning was that rarely is the initial plunge in a stock like that the true bottom, that generally such stocks go lower after they plunge because it takes a while for all the bad news to become diseminated and for all the disenchanted to get out. So, even if you had paid $40 for it, he thought that you should sell it at $24. I think it hit a low of about $10. |
