ART 3.70% 26.0¢ airtasker limited

Option 4. Sell now and buy back in for the same money but with...

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    Option 4. Sell now and buy back in for the same money but with more units when the dust settles.

    Consider this.

    You bought 100 units at $1.75 for $175.
    You sell now at $1.10. Get $110.00 in the hand, You lose $65.00.
    Dust settles and buy back in at say $0.85 for with $110.00. You end up with129 units. (An increase of 30% in units.)

    To recover your initial position the share price needs to appreciate from $0.85 to $1.32.
    At the moment to recover you position you need it to go back to $1.75.

    IF (and it's a big if) it gets back to $1.75 and you are holding 129 units you'll actually be in front.

    The point is the cross over point to recover your position is lower if you sell out now and have the kahunas to buy back in later.

    Somebody else can confirm these numbers. (I think they're correct.)

    I sold out of ZIP and IOU and made a small profit in both. Since then both have sunk below my initial buy in price. I still want to hold these 2 companies and I think they have a future but the bleeding isn't over yet. When they trade sideways for a while I'll be buying back in.

    DYOR.
 
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