I don't know what to do now. I wish I never read what he wrote. I bought on margin and I lost half of my value today. I am so f***ed now.
You are bothering me because I think you are lying. I don't think you are 19.
My mother and father picked my stocks with me until I graduated college and I only bought US bluechips not IPO's. I bever made any real money until I educated my self and learned fundamental analyis, which works very well except in bubbles and crashes.
If you are not full of crap then you are too naive to be in the market. It is not child's play.
Investing in single stocks with the associated single stock risk is really for grown ups. Picks aren't for kids. Index funds and big ETFs are.
You have a lot of growing up to do before you are ready to get in "the game" which is not a game at all. It is real money you are trying to grow not checkers, chess, roulette or a lottery. Go to the library and read a few books on investing. You could leran a lot from Suze Orman, Jim Cramer and the more traditional tomes. You might even make some money in the market.
You are so lucky to have bought at such a good price.
Why did you ignore three �professional analysts in favor of an individual investor who is IMHO excessively optimistic about the fate of LDK?
Jesse Pichel (Piper Jaffray) has a sell recommendation and a $34.50 target. Cheryl �Poon� Tang (Goldman Sachs) has a sell recommendation and a $33.00 target. Sanjay S Sanjay Shrestha (Lazard Capital Markets) also has a sell but he raised his target from $25.00 to $35.00 based on the horrendous gross margin decline.
Jesse is the honorable analyst that got the SHitu on September 25 and he was so busy that he did not have a chance to make a public announcement that LDK is a case of blatant accounting fraud until October 3, 2007.
The # 1 rated silicon analyst has raised his target LDK from $65 to $95.00. He is Pierre Maccagno (Needham) who has remained steadfastly positive on LDK's prospects and takes the company at its word and its numbers as authentic. "[He] reaffirmed his strong buy rating on the stock, however, viewing it as undervalued at 19 times estimated earnings for 2009. He expects revenue to grow at a compounded annual rate of over 80% between 2007 and 2010..."
I wonder why he is so very far above $33-35? Could it be he is rated #1 for his past success?
Or you might have read that Chong Tan Kim (UBS) is positive on the stock and raised his target to $71.
Instead of blindly following the first three paid analysts that think LDK is worth $33-35 and that have no credibility or the other two that are top ranked for getting right it right with targets of $71-95. You chose to rely on a single stranger on a message board with over 45,000 posts.
You imply that you paid no attention the above professional wall street analysts and probably don�t know that Jesse�s firm was a minor underwriter for LDK�s IPO and that they were fired.
You are also arithmetically challenged. If I buy LDK for 50 on margin my broker will comply with Reg T and require that I put up half the money and it will loan me the other half.
So if I but 100K of LDK (I have multiples more than that because I am positive on LDK, really, really positive especially after reading the Photon article and the Q-cells deal you may have heard of) I would have to have 50K in cash.
Your claim you bought on margin sounds a little fishy to me because a lot of posters here and even at my own broker E*trade say they/I can not leverage LDK. This is because the brokers have made the maintenance requirement 100% so to buy 100K I need 100K.
I�ll give you the benefit of the doubt and say you have one of the other brokers that will let you maintain the position with just 50%. I don�t know a single one that allows the standard 30%.
If you really bought LDK for 50 and it is now 40 you could only have lost 40% at the maximum. Yet you claim �I lost half of my value today. I am so f***ed now.� This is not mathematically possible.
I think that you are described best with these quotes that I believed:
#1) �A fool and his money are soon parted". Thomas Tusser / P.T. Barnum and,
#2) �There's a sucker born every minute� David Hannum / P.T. Barnum?
If you're 19 years old, you have a lot of lessons to learn. Losing money in the stock market is nothing compared to some other dumb things 19-year-olds often do: like enlisting and going to Iraq, or buying a motorcycle and crashing it and being in a wheelchair for life or worse.
It's a childish reaction to blame a stranger's posts on a message board for your stock trading. If you can't make your own investing decisions, then let your parents make them for you. If their advice loses you money, then you at least can complain to them about it and they may try to give you better advice in future. I doubt your parents told you to speculate with borrowed money on a stock tip you saw on a message board. Time to grow up, kid. Nothing reinforces the lesson better than facing the consequences of your own folly. Borrowing on margin to buy LDK at $50 was extremely stupid because only 5-6 weeks ago LDK traded below $27 for three days in a row.
If your broker liquidates your position for a bigger loss than your account equity, you end up owing the broker money, and they'll do anything they can to collect what you owe them. If you have an IRA or another account with the same company, they can go to court to seize it if you don't pay up. Depending on state laws, they might even try to collect the debt from your parents. Parents can be held civilly liable for some acts of their dependent children.
Sale when it hits $43.50 as it will go up to reshort.... if breaks $43.50 hold and put in a stop loss at $43.50 to protect urself...... if u are brave hold a few more days.... Solar conference may give a boost to reshort