Forum Archive Index - February 2000

[Nick Kearney <nk@xtra.co.nz>]

Harley D Betts wrote:
> 
> 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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Philip

I think Contact are good value at $2.90ish.  They appear to have support
there but there are some negative vibes around about the company. 
Utilities don't seem to be as good as they once were and with the
'reforms' not going so well there doesn't appear to be much confidence
in the electricity sector.  At the end of the day I guess if you are
happy to see them go sideways or slightly north then hang on I guess.  I
think they are good value at today's price(s) but how fast they will
move is a bit of a guess

NK

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