$1.30 down to 45 cents is still a massive loss in our...

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alwaysgreen

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19/05/23

08:36

Post #: 67855739
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Originally posted by Lies&damnlies: ↑

I love the way people keep referring to the 2.34 as if is a reference point. It only spent two days above 1.90. So on the third day it closed at 1.755 that's a 25% drop in two days (it's a disaster, the biggest two day drop in its entire history). The problem is that the FOMO resulted in some fools paying over $2 until the market ran out of fools.

Trying to make rational decisions by using an irrational market as a reference point is foolish. I was fortunate I have seen this explosive behaviour before in the market. I saw the plunge from the peak 2.34 to a low of 1.33 in 5 days. Then came the bounce that is so so common in these explosive markets in the next 4 days it bounce up to 1.89 and started downwards ( by then as a chartist it was so obvious that this was a dead cat bounce (DCB) I sold a small portion of my holding at 1.63 (which I bought in single digits) 12 days after the peak. More than free carry the rest of my BRN shares, after the 50% long term investment discount I would have still had to pay CGT for the other 50%. I took the opportunity to get rid of 4 of my underwater species (BRN had been one of my species) and paid no CGT. If I had sold the lot the CGT would have been huge)

As it turns out I have shares that cost me nothing and are worth 0.43 cents each currently. I am holding them instead of selling them (whereby paying CGT) because in the long term I can see them paying an annual franked divided some multiple times the original purchase price.

If I have some more underwater species carrying a loss and need some cash then I can balance the CGT against the loss and pay no tax.

So there is no way I see a loss of 85% from the peak of 2.34. I don't even see a loss from 1.63 to 0.43 as a real loss because after paying CGT that real sale price comes down to about 1.30 after tax.

After the sale of the small portion I more than free carried that means that there was excessed cash above my total entry cost.

Anyway it's late.

Goodluck

cheers Lies

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$1.30 down to 45 cents is still a massive loss in our investment.

At $1.30, I would have had many more options with what I could do financially.

BRN Price at posting: 43.0¢ Sentiment: Buy Disclosure: Held
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(20min delay)
Last 23.0¢		Change -0.015(6.12%)		Mkt cap ! $470.9M

Open	High	Low	Value	Volume
25.0¢	26.0¢	22.8¢	$3.707M	15.25M

Buyers (Bids)

No.	Vol.	Price($)
21	1200945	23.0¢

Sellers (Offers)

Price($)	Vol.	No.
23.5¢	940777	36

View Market Depth

No.	Vol.	Price($)
17	1841320	0.230
41	1804856	0.225
65	2154984	0.220
24	1059287	0.215
37	1116554	0.210

Price($)	Vol.	No.
0.235	846439	32
0.240	872829	20
0.245	557664	11
0.250	1443036	17
0.255	1172218	16

Last trade - 15.34pm 17/10/2024 (20 minute delay)

BRN (ASX) Chart

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