Ann: Lending Covenants, page-19

So just to be clear, you sold because you believe the shorting will increase and/or that we are yet to see the bottom of the cycle? If so, it's a perfectly valid reason to sell dependant on your personal circumstances even though it's something I generally try to avoid as I don't think I have the skills, knowledge, tools nor luck in finding the bottom. In short, I don't know if the selling has stopped and where the bottom is as that is something we'll only know with certainty after the fact.

Just because a company's share price has been smashed on one day, that to me does not change (in my view) the value of a company. As many others have already mentioned in this thread, while an increase to the D/E ratio may change the valuation used by analysts, this itself does not change the profitability of a company. At my age, I have the luxury of time and patience for that thesis to play out. My investment case may well be very wrong, but that will not be due to the movement of the share price.


Sure there may be safer stocks out there, there are also much safer asset classes than the sharemarket. If you want to eliminate the possibility of the market price being smashed, then the sharemarket may not be a suitable area because the share price is something neither you, the company nor I have control over as it's based on the sentiment of others. The current share price is a paper loss from my buy price but I haven't made an actual loss until I sell the shares to crystallise my position.

GLTAH