AVERAGING DOWN "DOLLAR COST AVERAGING". At best, this a very...

AVERAGING DOWN "DOLLAR COST AVERAGING". At best, this a very imprecise science. At worst, it is extremely dangerous and foolish in the extreme.

Firstly you made the wrong call on the stock, and now you are considering following up your investment with another plunge in the same stock!

I have not looked at the chart on FAR but can strongly visualize that it is in down-trend and to buy a stock in that situation is another no-no.

I consider a far better approach would be to buy a "defacto" FAR. That is, a stock with fresh promise in the same price range. Perhaps something like AAR or FML.

I bought FAR for something like 57 cents when the Tumuli No. 1 well was all the go in PNG. The drill got stuck and this highly prospective area was abandoned because of the potential of other more highly prospective locations in PNG. Not even a sidetrack well was drilled.

Since then FAR have had various share issues and I admit to taking up one of them. They were one of the first companies drilling and producing oil in the USA. Where has this got them?

In the early 1960's I averaged down on REID MURRAY HOLDINGS. Bought the first stock around 49 cents, then 40 cents and finally 2.5 cents. Hartley Poynton & Co (HARTLEYS) said at the time..."those who are selling know more than us". The investment was a total loss but I did have a great low average cost holding!

PS: I am still holding my original FAR purchase. Of course a real "investor" would have self imposed a stop-loss of say 20% on the purchase price(for making a wrong decision)and made a sale at 46 cents. Great price eh?