General Discussion AGY, page-17415

There's no need to guess@Kookie, I'm happy to explain if you are curious. Before I do though, I will say that I hope you have an accountant, as the ATO will likely disagree with your interpretation of profit/loss.

I entered AGY at 26.5 cents and quickly built a holding of 400k shares, with further purchases at 26 cents and 28 cents. The average price was around 26.5 cents (I think 26.7 cents if we're going to split hairs). That 400k parcel was sold for an average of 38.14 cents (again being very specific because I know you love to split hairs).

38.14 - 26.7 = 11.44 cents profit per share.

11.44c x 400,000 shares = $45,670 or 42.85% profit.

My average price AFTER that sale was ~40c. My only sale at a loss was the 1m shares I sold a week ago for an average of 24.75 cents, which equated to a loss of around $150k. Now though, let's compare scenarios of sitting and holding as some here advocate, or doing what I did.

First sale profit was $45k.

I can repurchase the 1m AGY shares I sold last week right now for $210,000. The amount received from the sale a week ago was $247,500, which means there's another $37.5k gained there (should I choose to buy).

The realisation of that AGY loss has also offset the capital gains on my next tax return, saving me $67.5k in tax.

$45k + $37.5k + $67.5k = $150k

So I'm $150k better off, having taken the actions I did, and that's before we include the unrealised profits from investing elsewhere in the meantime. You're welcome to your strategy (buy and hold no matter what), but it's clear that capital preservation and reinvestment was a better strategy than just sitting tight when things started to turn sour.

Good luck with your strategy though, each to their own.