Forum Archive Index - February 2000

[Harley D Betts <BettsH@landcare.cri.nz>]

Hi Philip,

I've been in this situation several times, where I've sat on a share that is
showing a paper loss.  The best way to deal with it, I think, is to ask
yourself whether or not you think that share is worth buying if you didn't
already have any, or whether you would prefer to put the money
elsewhere.  If you wouldn't buy it, then you probably wouldn't want to
hold it either if you already had some.  It depends on the situation with
the particular company, their underlying value and potential, and your
belief in their prospects.  If you think Contact shares are good value, then
by dropping in price they have simply become even better value.  That's
why (for example) I've happily followed ATP in Aust from my first
purchase at 73c all the way down to 24c (currently 30-32c).  Even
though they've fallen a lot, I'm staying in and buying more at low prices
because I know they will eventually deliver the goods.  But if you believe
a share's prospects are not good and it will underperform for a long time
yet, then, even though you are sitting on a small % loss, it might be better
to sell and put the money where you think it will do better.  At the end of
the day it's your call, remember as someone said last week you don't
want to get emotionally attached to a share.

Cheers, H.

>>> "Philip Robinson" <philip.robinson@paradise.net.nz>
21/February/2000 11:54am >>>
Hi,

I have Contact shares, and I was wondering if you guys though that the
current price weakness ($2.89), and a permanent thing or if it is
temporary. I have wantedto bail out of them, but I was waiting for a
better time. But that was at $3.10, now they are like this and I am thinking
should I cut my losses and get out or hang on, and hope for some
strengthening? Your thoughs would be appreciated.

Philip Robinson

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