There is a massive misconception that you are getting a bargain when buying into a stock in decline. The reality is that most down trending stocks will fall further and you will get burned.
Buying into a rising stock seems to provoke fear into people that they have missed picking the bottom or even missed the boat so they go away looking for another falling stock to get a bargain.
Yet the smart money is buying into the rising trend, not a falling trend.
Sundance is clearly still in downtrend so why would you buy more now? Buying at .30 was not a bottom as has been proven, yet we still see bargain hunters advocating buying more today. Whats cheap today will most likely be cheaper tomorrow or the next day.
I have to wonder why?
There was talk recently of the SP falling to .15 if the deal falls through. I can envisage .15 without the deal falling through. It may well happen because of the continued delays. Maybe then it might be a bargain basement price, but then again so might .10.
Just my thoughts
SDL Price at posting:
28.0¢ Sentiment: Hold Disclosure: Held
