"The person averaging down is more likely to get the bottom and then if the fundamentals are correct and the stock rises they will get the $146000 final position for a $40000 outlay."
I assume one problem with your thinking, You assume the stock will rise?
"The guy averaging up is unlikely to pick the bottom. So that purchase of 20000 at 0.50c is a very very optimistic and misleading example."
Not misleading at all, why do you assume 50 was the bottom?
Come on guys think a little clearer
Cheers
SLR Price at posting:
76.5¢ Sentiment: None Disclosure: Not Held