hi
firstly this is not financial advice etc
i bought some today at 2.50 with the belief that we are almost at peak pessimism in terms of consumer confidence. the labour markets remain strong and so consumer balance sheets should remain strong. that and also the recent announcement of sezzle indicating continuing revenue growth is also something that should bode well. the biggest point is that the company is not going bankrupt any time soon but there should be some concern with the growing size of the companies receivables. it seems the demand for the service is still there, despite other regulatory risks and slumping consumer confidence.
with that short and incomplete fundamental analysis, i address your question of what you should do with your position.
the decline from the top at 11.99 to 2.47 indicates a fall of roughly 80%. this has been a huge decline and has been in line with the sectors underperformance. if you truly believe in the company and have done your research then now COULD BE a good time to average down. would i sell now? i think its too late for that if you havent already. the chances are that you bought when growth was either expected to continue accelerating, or when the market was revising those growth expectations. with that said, you have probably paid a price that is overvalued for sezzle. as we know markets are very volatile and sometimes it really does feel like gambling. however, this is when buying opportunities arise. i do not know if this will keep falling, as the momentum to the downside continues. however, this is where in some instances and the right company, it is a buying opportunity.
bear in mind that there is significant risk in averaging down in a position if you are wrong. thats why the best strategy that you can use moving forward is to sell when its on a down trend and try and buy at a reasonable level to avoid big losses if you still believe in the company. this is difficult and requires active management but it is one way, as a trader, that ive found to minimize losses.
time will be the only one that can answer your question but in my experience in markets, which can be wrong in this instance, is that buying when there is blood on the streets could be a lucrative way to not just make money but also minimize your downside risk assuming the company is not in any imminent danger.
hope that helps you and good luck with your investment.
all in my opinion and DYOR
GLTAH
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