News: ORG Origin Energy Revises FY21 Energy Markets Underlying EBITDA In Range Of $940-$1,020..., page-36

hi

i just had a big debate with an equity researcher about sunk cost - which is what you're talking about cutting loss on a stock.

you would cut a loss on a stock if you think it will not come back to breakeven - is that correct?

i am holding onto my org stock - as i believe it can go back to $5 one day.

i only understand the cutting of stock loss - if the stock is very bad and cannot come back i.e. msb

equity researcher was telling me to cut my loss on org - why - then i have a real loss (now its a paper loss).

Plus, i dont know where to invest the remaining fund to gain back my loss.

what is the theory on sunk cost (cutting loss on stock) - can anyone provide simple to understand explanation?