David,
I'll give you my answer to your general question. My brother, niece, and I all bought a total of 500 shares of AOL in the $140 - $157 price range - non of it on a margin account. Right now we are losing lots of money..that is why we care about this retracement.
I know the whole internet sector is down, and hopefully there will be a recovery, but if we continue to hold it and wait to recover our losses, it is dead money. In my opinion, the price was artificially inflated to its recent highs due to rumors about CBS and speculation about a stock split. Even with the internet stocks recovering, you may not see AOL move to its recent highs without some major announcement. Listening to analysts on CNBC, you hear those that are bearish and bullish on AOL, so there is no guarantee this stock will continue to see significant upside.
I originally intended to keep some of it long term, but now will sell all of it when I recover my money, if not before. I am seriously thinking of selling at a loss and buying CMGI tomorrow at the post split price to try and recover my money faster.
Just one person's opinion....
Judith |
