The key point about averaging down is that the investor is working
on the assumption that, at some stage, the share price will resume its
journey northwards and the averaged down share price may partially or completely compensate for the initial losses. This strategy is OK, unless you keep pouring money into the futility of reviving a long dead horse. (The Monty Python Parrot Sketch comes to mind for some reason...Voom ? Mate, this stock wouldn't voom if you put 3 million bleeding volts through it!).
In the absence of accurate information available about CSMA and the completely bizarre postings about it in recent weeks, I am still at a loss as to whether this party is completely over (with Adhatters and Envirotech that is), or whether there's still some life left in the CSMA horse. I've chosen to remain firm on my initial investment, pinning my hopes on the spin offs, but refrain from further buying or participation in the mud throwing on this thread.
I'll still be watching with interest though... at the least, it's somewhat entertaining, in a masochistic kind of way. Plus, if you subscribe to the glass-is-half-full theory of life, things can only get better from here.
Regards,
Durro |
