Forum Archive Index - May 2000

[ril <ril99_99@yahoo.co.uk>]

Dear Nigel

A few years back I remember buying this stock called Cultus. Fay
Richwhite did an issue at 30 cents Aussie. I bought some more at 37
cents and 38 cents kiwi (less than the issue price).

I bottom drawed the stock and must have hung on to it for 3 to 5 years.
I read about it whenever it came up in the NZ or Aussie press. I rang
the managing director in Australia and got some non-insider information
about the oil sector in general. How it works.

Well eventually it started to move. It hit 4.10 aus or 4.65 kiwi. I was
sitting on a small fortune. There was this massive potential find in
northern aus.

>From those highs I watched it turn and it was around the $2 mark that I
came to my senses and flicked it. It ended up right where it started
before it was taken out at 80 cents or so by some Nordic carpet-boys.

What did I learn from this?

1)      Never fall in love with a stock. The stock doesn't care about           
you.
In fact, if you died in a three car pile up the stock would     be
unaffected.
2)      Set a figure (%) movement from the stocks high that you will    always
sell at on the way down no matter what. Someone told me         about this book
the Zurich Axioms. They recommend this there.   There example figure is
10%. You can always buy back in later   when the stock goes stable.
3)      Even though you have built up a relationship with executives all 
that counts is the price.
4)      Often when a stock is being hyped the most is the time to blow  town.

That's what I learned and I'm not suggesting ADV will go the same way
but I know what you are feeling.

Hope this helps delivered IMHO.

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