Trading the market is the right strategy. the only problem is that MPO, irrespective of the market, still has, like many other companies which have been hit for six, considerable value. Had i sold out at 25c, Iwould have been back in at 20c, let alone the 18-18.5c at the moment.
nine lives, you seem to have a view that 18c is still to high. given the market has fallen some 7-10%, MPO and other companies have lost close to 40-50% from thier recent prices.
Why such a hit on MPO?
It seems that the arguement that if people are covering themselves, they always sell the stocks that they have made a profit on and keep those in a loss situation. a physological occurenace that investors have a reluctance to make a loss. The problem in doing this is that they not understand why the loss company is in a loss and why the profitable company is in profit.
Many argue that MPO rose to quickly and use this as justification to sell and will buy back at a lower price.
nine lives, when will you buy back in. If you think 15-16c, trading the market MPO has been over over sold.
Even if there is a melt down, as has happened in the past research indicated that shares prices rose but to normal levels very quickly after the meltdown.
to sell at this price ie 18-18.5 to get back in at 15-16c is not worth the risk. to late for many of us who dont have the crystal balls that others do and good luck.
But if it does turnaround, both the market and the news about MPO, should see it move up as quickly as it fell and this is the risk that many understand and are not willing to take.
personally, i thought MPO would tread down but not to this extent. A bit to much selling pressure that to me is a bit irrational.
MPO Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
