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To: MCsweet who wrote (41956)3/24/2011 11:08:35 PM
From: Jurgis Bekepuris  Read Replies (1) | Respond to of 78714
 
I think I am in the same boat.

It's easy to add when people are selling because they believe that the world is going to end. It ain't.

But it's tough to decide what to do with companies accused of fraud or similar shenanigans. IMHO no amount of research either online or in real world can show you that something is NOT a fraud. That's why fraud accusations are so sticky. You can have some confidence, but even the ones that seem clearly not the fraud can be.

So if stock falls on accusations of fraud I don't know what to do. Sometimes I buy. Sometimes I sell. Sometimes I trade, which may or may not work out. I don't have a good solution at all. If someone does, please suggest it.

Obviously, it might be easier if you paint things with broad brush. Chinese RTO - sell. I don't, but perhaps this approach is valid.

Still leaves us to ponder what to do with something like EBIX.

Disclosure: I sold some CGPI today, not at the top though. I bought some GFRE today, not at the bottom though. I did not do anything with EBIX yet.