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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: S Shaw who wrote (19572)	3/3/2003 11:21:57 PM
From: jim_p	Respond to of 206092

PeeGoo was one of my most profitable trades in 2002. When we bought into PeeGoo the first time, it was for a sound reason. The VTS merger was a win win deal for both companies in a sub-sector that had excess capacity and OS activity was projected to pick up soon. When the merger failed, I sold and took my losses because the reason I bought was now gone and the OS activity never picked up. Taking losses is never easy, but I've gotten better at it over the years. The next time I bought into PeeGoo was in August when it was selling for .39-.40 and I loaded up. The plan PeeGoo had to sell Atlantis looked it might work and would give them enough cash to pull off a debt restructure. The stock ran up on heavy volume to $1.15 and Moe showed up and was going to save the company. After the shareholders meeting and we got everything we could have hoped for with a new management team and a new BOD, but the stock began to fall on very low volume instead of rising on the good news. I sold on the way down because the stock failed to do what I expected and because at the rate the volume was falling I would have been trapped with the large position I had. I kept a large position until it was clear that the Atlantis sale was not going to be what is supposed to be (the reason I bought it the second time) and lost most of my profits. After Moe tried to get the bondholders involved in a more comprehensive debt restructure, I was the first to tell everyone to sell because Moe's plan in my opinion was not going to work. If you bought at the .39-.41 range when I told the board I was buying, you could have still gotten out close to even. When it was in .50 range, several asked my opinion of PGO and I stated I would not be a buyer because the reasons we bought in the first place never materialized. The only reason I made money was because I had a reason to buy when it when I did, and when my reasons didn't materialize I sold. My gains on the second round more than offset my losses on the first round by a nice $150K. I'm sorry for all those who kept the faith and held on for the "hope" which never materialized and lost money. Holding your losers can be very damaging to your portfolio. Maybe we should all learn a lesson of understanding why we buy when we do, and learning to sell when those reason fail to materialize??