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Microcap & Penny Stocks : TSIS: WHAT IS GOING ON? -- Ignore unavailable to you. Want to Upgrade?

To: Loren S. who wrote (3617)	9/2/1998 2:28:00 PM
From: BarbaraT	Read Replies (2) \| Respond to of 6931

You could be right; however, averaging down is important if you bought much too high and you still believe in the stock. You are in the market to make money and that goal may never be reached if, in hindsight, you started buying too high or too early. Since my beginning price in the stock on a split adjusted basis is almost $7 .... I had to average down. Although this stock may see that price again, I am not forseeing it in the near future .... and if I did not continue to average down, even this past year at prices in excess of .50, I would still have an average price over $5. Yes ... I have too much of this stock, especially if I am wrong and this thing does not go back up. But then, I can't have enough if this thing does go up to $1, $2, and then some. Averaging down depends on how much you believe in a company and what your current price is. If you have a low average cost, it is easier to think the way you do. Thank you for your opinions, Loren, always valued.

To: Loren S. who wrote (3617)	9/2/1998 5:03:00 PM
From: John S. Baker	Respond to of 6931

OFF TOPIC: One purpose of averaging down is to take losses early while still maintaining a position in the stock. This way, Uncle Sam helps pay for your stake. (Yes, I know, nobody ever made money by taking losses.) Talk with your tax expert about doing what I call a "swap out". Basically, whenever the price dips below your personal threshhold, you buy 100 shares, or ten thousand, or whatever. 30 days later, you check the price on your highest-priced batch. If that batch (and not the average of all your shares) is significantly higher than what you just paid, you sell off high-priced shares in equal number to what you just bought, being careful to designate to your broker that you are selling shares from the highest-priced pile. That nets you a tax deduction against short-term investment income and against up to $3,000 of ordinary income as well. Anything over $3,000 in ordinary income can be carried forward and used in future years. And now your basis in the stock is lower ... or you have "averaged down." Caveat: I am not a tax expert; check with yours before doing anything like this. JSb.