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Thread: Reasons to buy...

  1. #11
    Whynot is offline
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    Indeed.....

    Quote Originally Posted by SiriusHope View Post
    Greenland and Whynot

    Yes I agree it's surely a gamble...so why not buy 1000 shares at a time and be hopeful over the next few years. If it fails to grow...oh well "That's Life"

    That's almost exactly what I'm doing. Every 2 weeks I throw in another 750-1000 shares and let it ride! What the hell eh? 1000 shares right now is the same $$ amount as a decent dinner out with my wife and I think my wife would love the $$$$ return on those missed dinners if this baby gets to $5 in a few years!!!!

    Thanks,
    Whynot

    - I also agree with Newman about their chances of BK being 20% (or even less) in my book. Too much good stuff going on for that.

  2. #12
    RickF is offline
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    Newman - I always enjoy your posts! You seem to be quite consciencious and knowledgable. I am thinking that it may be worth the risk to add to the stocks that i own and take advantage of an ave down so that WHEN it does come back (trying to be optomistic!!!) I will have a chance of breaking even or, if luck is anywhere nearby, making a bit! 20%ish is an odd that i am ok with!! Many Thanks!! (Appreciate your input Whynot!!)
    Last edited by RickF; 11-22-2008 at 04:27 PM.

  3. #13
    Whynot is offline
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    Thanks...

    Rick F- for the kind words, I like this forum and I agree that Newman gives us all a tremendoius amount of insight.

    Lets all get rich and stay LONG SIRI!
    -Whynot

  4. #14
    Newman is offline
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    Thanks for the kind words from both of you.

    As far as adding to the position now, you have to think of upcoming news to see what kind of momentum it may have:

    1) With the shareholder meeting coming up, they will more than likely be passing the dilution and the possibility of RS. This will be seen as negative more than likely and may push the stock down somewhat.

    2) At ANY TIME, they could be publishing information about financing, which may potentially cause the stock to skyrocket.

    Which do you think will happen first? If you think there is no financing news coming before the shareholder meeting, it might be wise to wait until then to pick up shares. My opinion, and I am not a financial or legal advisor...

  5. #15
    Whynot is offline
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    Thanks..

    Newman, good ideas.

    I hate to seem a bother, but I just want to clarify something:

    -If the R/S is voted on and goes through, then would it not be wise to gather more shares and average down to benefit from this dilution?

    I would love some clarification if you are so inclined and have the time.

    Cheers,
    Whynot

  6. #16
    Newman is offline
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    If you beleive that the stock is going up in the future (which we all do, thats why we are long), then yes, it would be wize to load up at a low price to average down. If you believe they will issue shares and dilute further (which I do, and I think is expected by the street) you may see some drop in price after the CC when it is improved. The caveat to that is the fact that the street may see that as having availability for financing and the price could actually go up.

    RS has nothing to do with dilution, and Mel has said it will only be used for emergency purposes (listing requirments).

    If I did not answer your question, restate it and I will be happy to answer.

  7. #17
    RickF is offline
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    Thanks Newman! I think that with all of the neg press and sediments from the analysts I am thinking that you are right about the dilution and I suspect that the analysts will bash further and the stock will drop more (taking more of of equity away!) That may be the time to ave down?????

  8. #18
    Siriusowner is offline
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    Quote Originally Posted by RickF View Post
    Thanks Newman! I think that with all of the neg press and sediments from the analysts I am thinking that you are right about the dilution and I suspect that the analysts will bash further and the stock will drop more (taking more of of equity away!) That may be the time to ave down?????
    Gents -

    I know most of you think that averaging down is a good strategy. It is not. Just see what happened to ENRON and WORLDCOM. The investors were all bullish like you all. The stock was tanking and individual investors kept adding to the position thinking the stock was getting cheap.... Where are they now ?

    The best strategy for the bullish right now is to HOLD, do not add to the position.

    My strategy is to HOLD right now and wait for the stockholders meeting, if I do not like what I hear or the future seems foggy I may keep holding until next earnings announcement. If at the earnings announcement, things have improved, then I will start adding ONLY if the price is right and the trend is up. Otherwise, I may close the position or keep holding.

    I know everyone is desperate to add since the price seems so cheap but THINK about it, the price is cheap for a REASON (and is not just the economy).

    If you add to the position right now, you may end up loosing all your money.

    Why do you think Apple trades at $80-$90 even when the economy is like it is ? If you have the urgency to buy, like many investors do, accumulate cash and think of every dollar as a share of your own company. If the stock market keeps going down, you make money !!! Then when things improve, you start buying cheap stocks from good companies...

    ps: Happy fingers are the investor's doom (triggering buy orders at the wrong time).

  9. #19
    Demian is offline
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    Quote Originally Posted by Siriusowner View Post
    Gents -

    I know most of you think that averaging down is a good strategy. It is not. Just see what happened to ENRON and WORLDCOM. The investors were all bullish like you all. The stock was tanking and individual investors kept adding to the position thinking the stock was getting cheap.... Where are they now ?

    My suggestion for investors is not to base their investment decisions on what anyone says if they compare SIRI to Enron or Worldcom....it is a common tactic used by shorts to scare people. Siri is not Enron or Worldcom.

    You could just as well look at what happened to SIRI the last time it was down in the pennies.......it went to over $9.00! I'm not saying that it will....because I don't know what's going to happen and neither does Siriusowner.
    Last edited by Demian; 11-24-2008 at 01:00 PM.

  10. #20
    Siriusowner is offline
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    Quote Originally Posted by Demian View Post
    My suggestion for investors is not to base their investment decisions on what anyone says if they compare SIRI to Enron or Worldcom....it is a common tactic used by shorts to scare people. Siri is not Enron or Worldcom.

    You could just as well look at what happened to SIRI the last time it was down in the pennies.......it went to over $9.00! I'm not saying that it will....because I don't know what's going to happen and neither does Siriusowner.
    Of course Sirius is not Enron or Woldcom... but it is farther away from being Apple or Google.

    I would not average down Apple or Google either. Buy when the stock is on its way up during a pull back. I am not saying buy at the top, that would be dumb, but buy when the odds of the company to thrive are good.

    Also, if you want to buy right now, buy cheap growth companies and look at the fundamentals. Leave day and swing trading to the pros. Buying one day to sell the next to try to pocket some gains is not a good strategy for amateurs.
    Last edited by Siriusowner; 11-25-2008 at 07:51 AM.

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