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Originally posted by mondy85: ↑

Hello again @Joannie

Firstly, I think from the tone of your post it’s clear you’re not trying to be pointlessly negative, so all good from me. Also I think it’s great you’re taking advice from an experienced sharemarket operator. As you note, HC is a discussion forum, so here’s a few of my own views on what you wrote. It’s not just intended for you, so please don’t take this personally, it’s also for others who recently seem to have echoed sentiments like yours:

Starting off with “Oh my, this is not looking good to me” is a clear tell-tale sign that you’re just looking at the share price, again. I say again because most posters here are aware that you’ve jumped in and out of IOU twice now, in quite short timeframes, at least one of those occasions at a loss of thousands (you shared that with us). I'm not sure if you still hold PIL but I believe something similar may have occurred there, based on when you told us you entered it, and the fact it's now fallen to 1.7c.
The piece about investors not selling due to avoidance of CGT is correct, but it only applies to a very, very small percentage of investors, in fact, a very rare breed. That rare breed can be defined as: investors who (miraculously, seer-like) could pick the very top of the SP range, AND who chose not to sell only to avoid paying tax. For these people (if they even exist), your point is valid. For everyone else, it is just another point written with the huge advantage of hindsight. Remember, with hindsight, everyone is a billionaire. Most investors could have no idea that 70-80c was going to be the top for the next two quarters. Sentiment - positive or negative - is an extremely fickle beast and it can change quickly. Trying to pick the top is a difficult and dangerous game, in any stock or sector. If you care to continue your sharemarket learning, Jason Zweig has written about this in ‘Money’ magazine many times, there are bona-fide historical statistics showing that the vast majority of day traders (people who are trying to time their buys at lows and sells at highs) do not make profitable returns in the long run.
I continue to be amazing by people who pass judgment on IOU after anything less than 12 months. If a person has any commerce experience they would understand that 12 months is a very short time in business. I have personal experience in established corporations that set up a new division/arm, which take longer than 12 months to go from planning/concept to execution/launch. Then it takes at least another 6-12 months after launch to determine if the model is really profitable and worth expanding (or not).
Most sensible investors hold for longer than 12 months not just to avoid paying tax, but because they understand that buying into a business – especially one launching a new product or entering a new market – takes longer than 12 months, easily. In some sectors, especially small cap tech and healthcare, this will mean that the share price will move around, often well above and below your entry point. There is no point handwringing and wishing you’d waited to buy in when it was cheaper, as it’s all hindsight, and like I said, we’re all billionaires with hindsight. An investor buys in at a price they are happy with and then waits to see how the business executes on their goals. If the share price sinks, but the business proposition has not changed – or has even improved – that’s the opportunity to buy more.
You’ve stated here that you “have no intention of buying back into this share ever”. I hope for your own sake you stick to this. Never buy a share just because it’s going up.
Don’t be ashamed of your past mistakes, everybody makes them – especially in the small cap space. It’s the reality of the risk vs reward equation at this end of the market. Instead, treat your mistakes like an expensive but very valuable training course, and apply the lessons learned in your next decisions.

Good luck with your other holdings, I wish you all the best.

Cheers,
mondy

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Hi @mondy,

I thank you for your post. As you said it was not directed just to me, but it has been a great help and food for thought. I have kept a copy of it to refer back to.
To others I apologise and the old saying comes to mind. The road to hell is paved with good intentions.
I wish you all well.
GLTAH's Joannie

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(20min delay)
Last 0.3¢		Change -0.001(25.0%)		Mkt cap ! $4.669M

Open	High	Low	Value	Volume
0.4¢	0.4¢	0.3¢	$2.562K	648.4K

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