GEM buy?, page-206

IMO one should buy, not because the SP has gone so low but, because one believes in the company's fundamentals and growth potential.
the CR price of 80c is a good guide. the price can go lower and should be viewed as an opportunity to accumulate at lower than CR price and qualify to buy more.
if one holds shares at a lot higher than 80c, buying through the CR allows one to maintain one's equity ratio and averaging down. when things go well, ones purchase at 80c allows profit without waiting for the SP to go back to pre-Covid19 price. of course, the SP is not guaranteed to NOT go lower than 80c after the CR. nothing is certain.
lessons can be learned from the GEM experience. One is to not buy on the basis of the news that government has put in an incentive package, without waiting for a company announcement. panic buying resulted in the SP to go up to over 1.00 , just before the TH, with the thought of not being able to take advantage of the SP. Talk was that it was going to go up quick to 1.50
Another lesson is that, in most cases, the SP will not remain higher than the announced CR price. In this case, the astute investor would have sold at say 1.05 knowing that before the CR, the SP would likely fall to 80c, at which time, they were going to buy back.
nothing above is financial advice. AIMO