It’s only a downtrend until the bend in the end, which happened late last year (you know, the 60% rise that you didn’t see coming), until unforeseen covid came along to spoil the reversal. Temporarily.
Pretending to know when the trend will end is laughable, so good on people for buying whenever it was that they recognised good value that suited their risk profile and investment horizon.
Like I said to Colin a while back, he won’t recognise and admit it’s reversed until waaaaayyyyy after it actually has, so “staying out” until he actually accepts that it has “safely” reversed, and then investing more, will see him miss out on serious gains from lower levels. Imo he would probably be still calling a dead cat bounce when it’s back over 1.60 or 1.80, and probably not “average down” until $2 or more.
Instead, a clever averaging-down strategy would mean he’d be in serious profit back at $2, not still in the red and only then about to invest more. Btw, the sp dropping ST does not necessarily automatically mean that the LT prospects for the business have worsened. People need to evaluate, re-evaluate, continually. They will then identify new opportunities for further investment (or not) as time goes on.
But alas, Colin never seemed to have any confidence in the long term potential of the sector or the company - “EVs take too long to charge and are just toys for the rich” or something like that. He was clearly never trying to build a long term position, and was seemingly just annoyed that he lost some coin and apparently couldn’t handle anyone else making the most of the opportunities.
Impatient risk-averse traders might not like that approach btw. They don’t have to! Imo, not advice!
Investors taking your insults about the LT prospects of the company and about averaging down being foolish (made at 86c btw) as any sort of “advice”, will be kicking themselves in the years ahead imo if they didn’t take sub-$1 as a perfect opportunity to buy in or average down.
It doesn’t take a mathematician to realise that say $40k invested at $4 combined with $40k at $0.80 = 60,000 shares total @ an average of $1.33 per share. When it’s back to $4, instead of being “even” by not averaging down, they’d be $160k up or sitting on a 200% profit. And of course there are all sorts of examples in between, where averaging down in multiple stages is also beneficial and appropriate in the long term in many cases. Of course that’s not a blanket “rule”, with some companies it’s sometimes better to cut and run. Evaluate. Re-evaluate. Simple.
Nothing wrong with people making decisions to invest, at whatever point in time, based on information and assessment at that time, if it suits their risk profile and investment horizon. Criticising them due to ST sp movement with the benefit of hindsight is nonsense.
And yeah sure, everyone knows it’s better to put that total $80k in at 80c, but that’s nonsense hindsight for the tall stories of self-proclaimed bottom-picking investment gurus.
Btw I don’t care what your average is. I was happily buying parcels at under $0.05 (under $0.25 post-consolidation equivalent), and happily supported this company directly via the $0.08 capital raising back in 2013 - as someone actually interested and invested in its long term future, rather than simply milking random 3-letter tickers for pips.
That was probably before you even knew what Lithium was yeah?
Sure I’ve bought higher too, on many occasions, but I have full confidence that each and every one of my parcels here will be nicely green in the future. Like
@Subs has said many times: the game is not over yet. It’s barely started really, with only a few % EV penetration so far.
Where is Colin anyway? Went to get lunch and never came back?! Or was he redeployed?
Not advice
DYOR
Imo!
Gltalth
