10 months later after initiating a Buy and after a 73pc decline, newsletter is now recommending a sell on EML.
That’s devastating but at least no Denial there.
When a stock starts having problems or issues especially from internal, staying put and watching the stock continuously falling is IMO a recipe for disaster. It’s that thing call HOPE , in the end people had to take an 80pc loss when they could have done a 20pc loss or less. Plus those proceeds could be better deployed to make money elsewhere.
Like if one had $200k to invest to begin with , even with a 20pc fall, you still have $160k to wait for the right opportunity at the right time. Get a 20pc gain from there and you would back.
But instead of one had allowed the cancer to grow and only exited 75pc down, you would be left with $50k, now you would have to make 400pc return to get back to break even. Plus the good times could have come and gone as was in EML case while capital is tied to the Dog.
if more people think of Opportunity Cost, there would be less reason to cling to Hope and not cut loose the problem stock.
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