Is there anyone else out there besides me who
purchased post split at $154-$155 ? Shame on me ! Seems
everyone else is in cheaper. I am a Long term investor,
and usually unfettered by dips - but this dip is
extreme by any standards.
My question, to
anybody kind enough to reply, is :
Is it better
for me to sell now and hope for a further dip /
buyback opportunity, or should I just hold for now
Will this stock realistically hit $ 155 again ? Is
there any consensus regarding just how far it will
continue to drop ?
These are questions we all are
probably asking, but I would be greatful for any response
along with supporting rationale.
luck to all ! Thanks .
Actually, the strategy for anyone who bought
above 120 is very simple...you have one of three
a) Average down...assuming you have more cash,
simply buy the same number of shares at this now very
reduced price (you can also now think of your purchase as
a buy at say 108, assuming you bought at 120, then
again at 96).
b) Be a long-term investor and
hold...classic case of if you believed in these guys at 120, you
gotta also believe at 95 (business model hasn't
changed, mgt hasn't changed, etc).
c) Sell your shares
at a loss.
I can tell you, from enough years of
doing this, that option a (averaging down)is the most
beneficial in both the short and long term and is the best
way to quickly recoup. It does take a bit of balls to
do, but you will be rewarded by this strategy. Next
best is option b and just wait out what will be a
longer term win. Option C is a guaranteed loss and will
only make the tax man, your broker and the shorts
happier!! Average down or hold is the only way to play this
Let me tell you my story. I bought about 50K
amazon stock in
September when it had peaked to
about 128, just before the fall to 65. I then averaged
down and bought more shares at about 80. However, when
the stock did nothing for a few months, I sold all
for about 95. Now amazon split adjusted is trading
far above even the initial 128 dollar purchase.
So I agree with this poster. Averaging down or hold
is by far the best strategy in a stock with future
Patience is a virtue. Go to RagingBull.com
message board and read some posts there. You will be
convinced to stick around for long term growth.
my example in buying into the momentum. I did that
last year on emotion rather than just waited for a
profit profit taking. Last year, just prior to GCTY IPO,
CMGI started its previous record run, I got caught up
to the momentum and bought 36 shares for my Roth IRA
account at $85 (presplit). CMGI promptly went higher to
$91+. After that, it was all down hill.
done a lot of research on CMGI and know that it's a
great play in internet stocks. I view it as an internet
mutual fund. That was the main reason why I never sold
my shares below what I bought. I hung on and hung on
longer as I saw CMGI went lower and lower. It was like
an avalanche. Well, CMGI finally dropped all the way
to $35 1/8 on that faithful day that I emailed my
sister to tell her buy more since I thought it was the
bottom. It was October 8th, 1998. I wished I had more
money at that time to buy more, but unfortunately, I
had a margin call for about $5K. Yes, it was very
scary, just like last week. Unfortunately for My sister,
she didn't buy any of my recommendations (CMGI @
$35+, INKT @ $53+, and DELL @ $40+). It was I who told
her to wait, though. I emailed her in the morning,
but buy noon, as the market continued to slide, I got
scared and told her to wait. It probably was a good idea
to wait anyway since you don't want to catch a
falling knife. It is extremely difficult to catch an
absolute bottom, but I came pretty close. The next day,
the market rebound because Greenspan lowered interest
rate (I can't remember the exact detail). Heck, if my
sister just took the plunge anyway after CMGI, INKT, and
DELL started to rebound, then she would be in great
position right now. I guess it wasn't her time. She and
her husband are ultra-conservative in my book. They
have a margin account, but dont' want to take a chance
when great opportunities knocked on their
The moral of this story is that "patience is a
I don't have a crystal ball, so I don't know where
CMGI may be a month or two from now, but I believe in
CMGI and its management a lot (especially David
Wetherell) that I know for sure CMGI will be one of your
best returned stock ever in the next 5 to 10 years.
Stick around and enjoy the profit. Buy only the money
you don't need and stop worry about the short term
Good luck to all.
P.S. I bought my
first shares of CMGI for my wife's Roth IRA account in
March, 1998 at $55 1/6 (2 splits ago) and sold at $74.50
(after one split) for a cool $15.5K gain. I then bought
back some for my IRA account and her new Roth. I also
bought a small amount at $46 (presplit) and sold at $53
1/4 (too early - these were just for quick profit).
Just last December prior to earning, I decided to buy
a bunch on borrow money at mostly around $73+ and
then bought more at $119 (both presplit). My latest
purchase was at $129.50, which I am in the RED.
intend to stay with the CMGI
Hi Tech, Like you, I am in at 127. This co. has
its hands in so many of today's successful internet
stories that they will be doing fine yet again this year!
It is not as thought they are small no-name co. with
nothing to offer. See you at the top Good luck.
I think I've got you beat. I paid $156.45/share
when you add in the commission. I probably paid more
than anyone on this board...I guess I got a little
anxious. I'm a fairly new trader, but I think I just
learned a valuable lesson...TO BE PATIENT.
Hold on tide and don't sell , you lost all that
and you want to sell now, are you crazy , i have seen
this stock how it zooms, a week before in one day went
up 70 dollras, so do not panic, i don't think it
goes lower then thsi , it might goes down couple more
dollra , the it will be back with vengence, belive me ,
i have seen this stock, it hase been spilited 2
times last year so be pationt and you will benefit
CMGI was shooting up like a rocket when I bought
in. Actually it was at 165 pre-split. Also bought
BFLY just after a 40-50% gain (6 3/4 from 4), it went
to 24 two weeks later. You just don't know about
these internet stocks.
All the guys on this
board talking about buying on dips must be
millionaires. I have yet to learn when a stock has bottomed or
peaked. At some point you just have make the plunge.
With the internets its hard to tell the difference
between a dip and a "semi-permanent" correction until the
correction is made (see charts for MZON, BFLY, SKYM, UBID
and many others) . And big runups are often followed
by more big runups and then another big runup or
So don't feel bad, nobody can predict
these internet stocks. The way CMGI bounces around you
may be able to sell at 155 Tuesday morning and then
get back in at 100 after lunch.
Good luck. We
all need it.
Looked technical chart and it indicated a buying
signal for this Stock. It might take another two months
back to 154.Listen to Dines, buy Internes! He did
suggest to buy CMGI. As a long investor, I believe that
CMGI, Yhoo, Amzn will achieve 600% or above return in
1999. Short term trader can't get it because they will
miss oportunities!!! I am going to buy more CMGI on
I can't believe people think that internet stocks
are finished. That is crazy. Look at the list of
"major" internet stocks. It is a very very short list.
This media/store front/??? is much larger than just
the firms involved so far.
Will more come into
the picture? Yes, and CMGI will be the
I can hardly wait until the mergers and
acquisitions start in this industry. The AOL and Netscape is
just the beginning. I think we will see internet
company buying a major (I almost said Fortune 500)
Also, the Fortune 500 are moving into the
internet. Can you imagine the deals that the current "top
internet" companies will be able to cut. There will be
sales people in the internet companies jumping for joy.
I wish them well and hope they make a ton of money
as a shareholder.
The internet is just
beginning, but increasing 67,000 people per day. Even at the
highest prices you want to get in.
CMGI is cheap
at these prices.
Are you heavily invested meaning do you have a
large chunk of your portfolio in it. If so you might
want to lighten up a bit on the next run up...
Unfortunately, you got in at the worst time...Not to worry
though, sooner or later CMGI will surpass 155...This
company is an aggressive internet play.I don't believe
the internet stocks have lost their steam...The stock
can't just go straight up...
Abby Joeseph Cohen
thinks internet stocks are valued correctly!
certainly a wild ride (especially if you own options on
You have several options:
1. You can
average down your cost basis by purchasing more shares on
further dips, and wait for the next big rally (which will
2. You can sell and take your loss (which I don't
think would be a good idea at this point).
You can just hold on to what you have for the long
term, which will reap you great rewards if you have the
And remember, never buy into the rallies, wait for
the dips -- they'll come to you!
it has been very hard to determine dips with the
internet stocks. Sure, 10 to 20 point down days come and
go, but prolonged drops are tough.
CMGI is a core holding if you like / believe the
internet. If you bought at 155, hold on. It will be a solid
investment. I say that holding shares at $45 and loving every
minute of it. Even the last week.
i also bought at 150 after the split and
crying....made so much money on amzn and now all gone. I will
continue to hold my securties until i get even. There is a
big potential that this stock is going to where it
was just based on my research and watching fellow
investor in this board.
much shares did you buy at 154 anyway?