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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments -- Ignore unavailable to you. Want to Upgrade?

To: AJ Berger who wrote (14981)	3/13/2001 7:51:46 PM
From: Land Shark	Read Replies (1) \| Respond to of 18998

Works assuming you hold long enough that the issue price goes above your cost average and you've the intestinal fortitute to ride the bumps. It also assumes the investment is of high enough quality that it won't go to zero long term. I wouldn't do this on margin either, spoils the strategy.

To: AJ Berger who wrote (14981)	3/13/2001 8:04:17 PM
From: RockyBalboa	Read Replies (1) \| Respond to of 18998

Yes, the fund manager who peddled funds to me also taught me that its "correct" name is cost averaging. On the other hand, in my profession the people tell me that this increases the Value at Risk by far..., whereas my brother compares it with "downfunding" (later stage funding at lower, not higher prices than the earlier rounds). In any case, good luck with it, maybe the bouncing NTIQ albatross takes it under its wings. my personal view was that a 40% underwater under the first position was a tad too much for my stomach...