My portfolio is really just three beaten down stocks. MT, ANR and WLT. My entrance prices are around 18, 7 and 36. My concern is, although these stocks have traded for much higher prices and seem to be very low in price, are they ever going to go back up, even part of the way? Or are they like tech stocks in 2001? Like Lucent, Intel and others. Beaten down and remain down or possibly go out of business? Thx.
There is no way to know for sure...if any of us had that answer we wouldn't need to play this game for long or at least have the need to spend much time on it. Have you tried selling covered calls in order reduce your cost basis? I original bought at 20 but my current cost basis is somewhere around 13/shr and dropping. I think it is all but impossible to predict the bottom of any cycle or trend especially in a volatile market with so much uncertainty. However, there are instruments (such as options) that will help reduce risk and mitigate not buying at the bottom.