A couple of weeks ago asked whether the share has bottomed out. I wish I heeded the advice of the forumite who indicated that it still had a way to go down! Now that the share price has fallen all the way to R25 (from R45 in just 2 months), do I still hold onto it or is it too late to dispose of it?
In june you were short and got burnt during the bear flag and then you decided to go long and you burnt again. maybe you should leave this stock alone otherwise the burn wounds would just continue. by the way what was your plan when you went long at R45, what was you stop loss and profit take point and your justification for entering the trade in the first place?
Their is little point in selling now. I don't like it but, it is a large company in an industry in which there are large barriers to entry. It is an important component in SA and therfore a significant future role to play. Currently trading at less than half NAV so could be a takeover target otherwise it will recover once economy starts improving probably 3-4 years. By then maybe management changes have taken place which to me is half the problem. It is not nice to see on your portfolio so just put tippex on the screen everytime you open the home page.You have my simpathy as I am sitting with a similar problem with ALT.
Torres, the chart looks ugly. The 200day moving average is downward sloping and the share itself is trading well below that. I wouldn't hold my breath on this one. Monitor it and wait to see if the strong downward trend reverses at some point into a strong updward one. Short term chart looks equally dismal.
Sell, reduce your profits for the year with the loss.If you still believe in the company, then buy it back at R25(you will probably still end up with the same number of shares). Now you paying less tax, and you you got the same number of shares at half the price and the taxman absorbs part of your loss. I dont know the company, but i would rather buy SPP or LHC at the current levels.but remember, ACL can still go to R5
Thanks for all the advice guys. I got up this morning determined to get out of my ACL's, only for my trade not to be processed by OST. Had a relaxing day thereafter and pleasantly surprised by a 10% pop today! Thanks OST - your terrible technology has for once saved me from a bad decision! Probably should put in a sell order before I lose the good fortune of this morning...
What we don't realize about rock bottom levels is that there are actually levels far lower than that. The money you could have made so far, instead of clinging on to false hope. The 2% rule. Getting knocked out is not nice, but much better than losing half your portfolio.