QFE - Chart, page-808

@skinsy11

i see that QFE have come out with an announcement and they said they have some sort of asset backed debt facility, probably in an attempt to stem the decline in the share price.

Obviously there is some concern about the need to raise cash via a placement and they are saying they have plenty of cash via debt and by inference a raising will not be necessary.

I am not currently a holder, but I was looking for an entry position, but until revenues start to equal expenses then I am not going to take a position.

Hypothetically in the case that I were a holder of QFE and say I bought $30k at 30 cents, which is now worth $13k, I have three choices.

Take the loss and move on to something else.
Average down as soon as I see a turnaround to regain my losses

Worst position is a $30k loss on the whole original position, that would be useful as a tax write off.

If taking option 1 then the new stock has to be able to turn $13k back to $30k, say within a year.

If taking option 2 then a further investment of say $18.8k might be necessary (If I think it can easily bounce to 20 cents, how many shares do I have to buy at 13 cents to get me to breakeven?)

Sometimes I bail and sometimes I buy, it all depends upon the situation.

Option 3 sometimes is not a choice and it just happens.

Sorry can't be more helpful, but it is just a case of weighing up the options for your own circumstances.It could look something like this.