It's true that everyone has their own "style" of investing, but the point is to have a discussion over what is more likely to work, and work better, over the long run.
So you will simply "miss out" out buying more, even if it drops to $1.51 or $1.41....even though you "expect" it to run up to $8.35. Does that make sense. A drop from the $2.90 high to $1.51 is almost indistinguishable as a drop from $2.90 to $1.35, it would seem to me, and you should be equally "gaga" to be able to increase your position with that kind of decline.
How did you come up with your $1.35 price? And what is so "sacrosanct" about it?
Everyone has their own style of investing. For me, what I try to avoid, is buying stock on the way down. I much prefer the exact opposite way, buy it on the way up and protect underneath it. I believe this stock, MNI, will settle down at $1.35 in the not too distant future. If it doesn't, then I'll have to be happy with what I own, and what I've made. Which I am.
Just wait until $1.35. Why not just wait? The buy-side mo is gone and the luster has rubbed off the earnings report, with the knowledge that the 2q earnings will take 100 quarters, or 25 years, to pay off the debt. The company only has 5 years to do it, so they'll have to quadruple the 2Q earnings every quarter, for the next 5 years, to pay off the debt.
$1.35 might even be paying too much short term, but I'm buying there and selling at $8.25 per share next August.
LOngtime, I follow a pretty strict investment procedure that keeps me from sometimes buying stock on the way down. I do my analysis and wait for my trigger price and then go. I like to buy on the way up, not down, and protect my purchases with stop orders on the way up.
Have I missed opportunities? YOU BET? Have I bought too high? You Bet Have I sold too low? You bet
MY bottom line is to set a price and then take action, taking the emotion out of the decision. This strategy also causes me to sometime sell too low, which is the most painful decision of all.
If this stock doesn't drop to $1.35 then I probably won't buy any more. I bought a bunch in early July at 50-54 cents per share, and sold more than half that at $2.31 5 weeks later. No matter what happens from here, I/ve made good money on a stock that really and truly looked like it could go bankrupt.
I keep thinking about the $2.036 million in debt and wonder how in the hell they are ever going to pay that off?