Did you ever read Jesse Livermore's book "Remininces of a Stock Operator". He traded stocks at "bucket shops" in the 20's. They called him the Boy Plunger because he sank so much into each trade.
Not a big fan of diversification but do it anyhow. I am fairly speculative in a newspaperstockkind of way with 20% of my stash, particularly after an 'all-in' trade with GCI about two years ago at $2+change turned a pissant $12,000 401K into 90 grand. That one opened my eyes to all-your-eggs-in-one-fiasco as a strategy. I mean, when a company's shares are trading at its PE like LEE and there's no red ink anywhere on the books, how can that bring calamity? Suppose it can but don't think it will.
I may get some more LEE if and when it ever dips...
Thanks for the insight. I'm a put all your eggs into one (or two) basket and watch that basket kind of guy. Even in the worst market, some stocks soar. I'm going to watch-and-see with LEE for now.
I like LEE, but to put 60% of my portfolio into it is way too risky. LEE could reasonably shoot up to the $4 or $5 range, but it's just as reasonable to see it folding. The newsprint business is very shaky, and the pay to read digital news has'nt really caught on to the general public, so I think LEE has a lot of pot holes to maneuver around. That said, I would also add that putting 60% of your portfolio into any one investment is not a good idea. Your risk reward situation is pretty shaky.
Interesting dilemma, and it seems that you are implicitly acknowledging that you are uniquely suited to answer your question. That being said, you should consider the interplay of your time horizon and the volatility of LEE stock. After all, if you needed the money in summer/autumn 2010, you would have been a victim of the inexplicable plummet down to the $1.70s. Of course, you should also consider your risk tolerance, etc. etc.
My challenge is this. I have 21,500 shares of LEE - about 3/5 of my 401K - in LEE. The other 2/5 is in a blue chip mutual fund that is pulling 20 percent. It feels irresponsible and more than a little risky to be fully loaded on LEE....that is, all my eggs in one basket....but if the basket is sound and can convert 30 cent eggs into $3 creme brule, well....should I go all in....that's my personal question.
I also agree. I lightened up a bit today, to enter other situations, when the bid was $2.97 to $2.98, and note that, both times, I got filled at $2.975, and there was an immediate reported "double count" of my shares at $2.98.
Clearly, a broker is/was holding a large buy order for an investor, with standing order to earn a 1/2 cent markup, on any purchases. I would imagine that order might very well be to buy "as much as the market will sell," at prices below $3, but to not "overwhelm" the market with that buying. Rather, to only "take" shares that are dumped at the bid.
In short, this is a "dark pool" of buying interest.