Well the good news is I don't think you're going to make a loss as I don't think we're going to 20c (I could be wrong though as I didn't see us dropping below 30c either). There's nothing wrong with averaging up in quality companies either. I entered AGY at 26.5c, and I've averaged up along the way to now be at 40c. I'm not looking so smart right now, but I figure by Xmas I'll be feeling a lot better about my decisions. Never make your decisions based on average prices, just decide whether you think it's a profitable investment or not. You don't win a prize for the lowest average buy-in price, it's about making money after all.
And I don't disagree that there's an industry dedicated to extracting money from retail shareholders, but I'm not so sure what the scale of that industry is. Regardless, I agree with you. The important point to remember though is that it cuts both ways. There are industry professionals creating distrust so they can buy, and there are industry professionals creating trust so they can sell. It's up to the individual to decide where the truth lies, and act accordingly. I've sold a few to de-risk my portfolio a little, but I still hold a significant position (25% of my total portfolio) in AGY because I believe that it'll achieve some milestones in the very near future.
At the end of the day, my view is that honesty is always best. Bad news doesn't get better with age, and we can see that with CXO this week. I'm not saying that AGY has bad news coming, I'm just saying that a retail holder policy of ignoring or hiding bad news isn't helpful. One sided info/analysis doesn't help anyone to make informed decisions. Trust in AGY won't be achieved by shouting down those who have doubts. Trust in AGY is achieved by the company delivering on guidance/targets. That's out of our hands; it's up to JZ.
AGY Price at posting:
24.0¢ Sentiment: None Disclosure: Held
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