General discussion, page-901

Sorry, Krusty - I think that the hardest lesson I have learned is forgetting about my investment entry price or how much money I have sunk into a stock. The current price is the only measure. The concept of averaging down is only valid if I trust management and can explain the company's position. How much I will lose is only a function of what I paid.

It's hard but when I have hung on too long I have lost more - my last mistake Brierty held on too long after they missed too many projections - AJX is a pretty close second.

It's not relevant what happens to the company you either believe or you don't and I hope that it does but at some point, you have to either believe and have to decide why you are not investing more or you should sell. We use a system of % of capital so if the price drops we actually get space to invest more as we hold all investments at the closing price. If we don't want to risk more at what is now a bargain price the partners question your decision. So you really have to get the immobilisation out of your system as you get tagged by them. The question always is "either you have to change the % capital you are prepared to risk or you no longer would invest - if that is so then why are you not selling and taking the cash and investing elsewhere." If you drop the % capital you are prepared to risk on the opportunity that's a dead giveaway that you are just hanging on...

It's a hard lesson but I have been rewarded more times than I have missed - I don't look back and have regrets on the basis of info available that was the decision I took.

The other hard lesson past behaviours predict pretty accurately future behaviours. Plenty of times I have noted that people expect the same decision makers to behave differently. Why would they change you have to identify the catalyst for change.

Sorry, but the price of the share is that price because based on the available information that's what a willing buyer will pay and a willing and maybe even an unhappy seller will accept. If its mispriced then that is, in fact, a failure of management to communicate the position or the market does not believe them - my opinion.

Plenty of holders are still in the money especially the early adopters so their decision may well seem different to anyone who got in later. I don't agree that it's any different so we sold out around the time of the 35c cap raising as we lost our belief in management - still believe in the science (especially the Dr B) and some players but not enough for a critical mass to put more in so sold out.