So if it drops another 50%, down to 3.5, then triples to 11, you're still $16 bucks short. (Unless you're crazy enough to average down to zero).
Couldn't disagree more. Look, if I got 100 sh @$27...that's $2,700.
Were it to fall to $3.5, I and Bald man and a few more "crazies" would back up the semi and load up. But even just 300 shares at$3.5 would do the following at $11:
300 x ($11-3.5) = $2,250 profit on the "crazy" buy down
Now, those original 100 shares are held at an average cost of:
($2,700-2,250)/100 = $4.50 per share.
If you dump them at $11, then you lock in a net profit of $650 on all 400 shares.
Now, I'm not saying that this is how it will play out. In fact, you picked the scenario. Point is, prior to the internut exuberance of the last few weeks, this was a $3 stock that saw intraday and intraweek swings as high as $10 and more. Whether you take a position and hold from $3 to 11 OR take a position and hold from $3 to 5 and do this in rolling fashion, you can certainly recover losses from a $27 mistake...as long as there are fundamentals.
TG |
