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dividendhound (< 20)

Biggest underwater losers you refuse to sell.

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6

June 19, 2009 – Comments (18) | RELATED TICKERS: ERII

Was apparently badly overpriced when I got in, is probably still overpriced, but if it gets sold it will probably announce ten new desalination projects and go up 50% the next day. 

18 Comments – Post Your Own

#1) On June 19, 2009 at 3:08 PM, gunark (82.81) wrote:

I rode FAZ half of the way down this bullshit rally. Still holding on to it, but it's starting to look pathetic unless the market rolls over as expected real soon.

Then there're the "Rare Earth Mineral" plays like GWG.V -- lost my shirt on those but they're finally starting to move and I'm still holding, and the WiMax crap like ALVR and RDL.TO that will probably end up going to zero. 

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#2) On June 19, 2009 at 3:16 PM, russiangambit (29.30) wrote:

NOV was mine for a while , which I finally sold on this recent bounce at a few % loss.

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#3) On June 19, 2009 at 3:21 PM, Evlampius (< 20) wrote:

CPST i hold it since April 08  rode all the way since ~$3 but kept buying reducing cost averaging...

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#4) On June 19, 2009 at 4:02 PM, ChannelDunlap (< 20) wrote:

It seems that everytime I buy EXM, I'm down 20% before I know it.  They hooked me a couple really good runs and now I'm a sucker :(

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#5) On June 19, 2009 at 4:21 PM, checklist34 (99.70) wrote:

never hold a levered ETF for more than a few days unless you are SHORT it

I'm underwater only on RJET i think, and i'm down at least 33%, sucks.  Well I was before I doubled down this week.  We'll see.

I was down 70% on ODP, doubled down, I think i'm up 300% now.

I was down on EVERY SINGLE STOCK I HAVE EVER PURCHASED, except RRGB, which I sold recently just to ensure that I win on one stock in my life.  lol

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#6) On June 19, 2009 at 4:22 PM, checklist34 (99.70) wrote:

i got my fanny completely handed to me on MTW.  I wrote a blog about that... I sold 1 day off the very bitter low and lost my complete fanny.

in fact, I had to pay alot of money for a new fanny on the black market, compounding my loss on MTW

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#7) On June 19, 2009 at 4:27 PM, djkumquat (50.07) wrote:

CPSL, EP, and GE

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#8) On June 19, 2009 at 4:33 PM, dividendhound (< 20) wrote:

Ha, nice.  I agree, sometimes it is nice to have principles.  Another thread would be "stocks that you refuse to check the ticker of anymore because they've gone up so much since selling that it sickens you". 

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#9) On June 19, 2009 at 4:53 PM, TMFBabo (100.00) wrote:

If you are underwater and you have a high level of conviction that a stock was undervalued when you first bought, you should consider buying more.  If you're underwater because of new unfavorable developments or because you didn't research a bad company thoroughly enough, you should consider selling. 

If you don't want to own the stock anymore, sell it.  I have a nice quote:

More money has probably been lost by investors holding a stock they really did not want until they could "at least come out even" than from any other single reason.
- Philip Fisher

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#10) On June 19, 2009 at 6:00 PM, gunark (82.81) wrote:

 If you are underwater and you have a high level of conviction that a stock was undervalued when you first bought, you should consider buying more.

 That's how I shat myself with FAZ. Dollar cost averaging all the way down.

 If you don't want to own the stock anymore, sell it. 

I have two gems in my portfolio that are no longer worth the commission it would cost to sell them.

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#11) On June 19, 2009 at 6:13 PM, dividendhound (< 20) wrote:

Yeah, DCA is nice, but man, you can get slaughtered if you are wrong because you keep throwing good money after bad.  It can be really hard to determine whether the fundamentals have changed when half the media appears to have an agenda for one side or another. 

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#12) On June 19, 2009 at 7:56 PM, rd80 (98.29) wrote:

GE 

and I recently bought a little more.

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#13) On June 19, 2009 at 9:42 PM, russiangambit (29.30) wrote:

> I was down 70% on ODP, doubled down, I think i'm up 300% now

Gee. Why are you long ODP? Have you been in their stores? There are 2-3 people there, max. I am soooo short OMX, I am waiting for it to crater  completely before I close the position. Would've shorted ODP too, but there are no shares available.

Take the short squeeze for what it is worth and get out.

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#14) On June 20, 2009 at 7:58 AM, TMFBabo (100.00) wrote:

That's how I shat myself with FAZ. Dollar cost averaging all the way down.

I generally do not hold leveraged ETFs (got in and out of DXO once), but I strongly disagree with holding them longer than a day or two.  I believe many CAPS members have warned of doing that.  I believe it's a day-trader's tool and that it is not a good long-term investment tool.

Yeah, DCA is nice, but man, you can get slaughtered if you are wrong because you keep throwing good money after bad.  It can be really hard to determine whether the fundamentals have changed when half the media appears to have an agenda for one side or another. 

I think you hit the nail on the head.  "throwing good money after bad."  If one cannot determine how to purchase undervalued securities consistently, he should be investing in index funds. 

Also, what the media says is mostly garbage.  One should invest based on the data available at hand.  Personally, I read all the finance sites only to find out what has recently happened in the world of finance (bankruptcies, mergers, etc.).  I ignore the commentaries and analyses as much as I can.  I have a very low opinion of the so-called experts on these sites. 

Speaking of experts, I remember this one video from 2007 where Peter Schiff was on with a group of "experts" to talk about the market.  Peter Schiff warned that the banks were in trouble because of their risky assets.  The other 3 or 4 people on the show proceeded to laugh at him and call for Dow 15,000 or 18,000. 

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#15) On June 20, 2009 at 11:17 PM, TheCaulfieldMan (86.43) wrote:

PDS

 I bought it around 10 then it dropped to 2, now it's in the 5s.

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#16) On June 21, 2009 at 12:06 AM, Seano67 (33.13) wrote:

I held onto FAZ for nearly a month, despite all the warnings I'd received otherwise. One of the dumber mistakes I've made in my investing life. It just kept going down, seemingly despite whatever the market was doing. Even on days when banks stocks just got hammered, FAZ would only make up a very small percentage of its losses since I'd bought it. And on days when bank stocks rallied? It was terrible. It just got killed. And so I held on illogically and fruitlessly hoping it would make a little bit of a turnaround, and the losses just kept compounding. It was honestly making me feel sick and all stressed-out. Investing should be fun, but this was about as fun as having bamboo slivers shoved underneath ones fingernails. Finally I just had to swallow my losses and get the hell out. 

I never should have gotten involved in a leveraged ETF like that in the first place, as that is not my style at all. I've never even shorted a stock before! Never even thought of doing something like that. I just wanted to make up for some of the losses I took last year and wanted to do that as quickly as possible, a quick score as it were- so it was pretty much just a case of impatience and greed, and I paid for that. 

Anyway, that's my cautionary tale borne from painful experience with FAZ. If you hold it, it's going to hurt you. If you hold it too long, it will kill you. So don't die, please.  

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#17) On June 21, 2009 at 12:56 AM, dividendhound (< 20) wrote:

bullishbabo - I liked your quote:

More money has probably been lost by investors holding a stock they really did not want until they could "at least come out even" than from any other single reason.
- Philip Fisher

This is a good point, although it is a lot easier to acknowledge it than to follow it.  There's definitely something psychological going on - you look at the ticker and keep trying to will it back up to your buypoint, rather than just acknowledging that you made a mistake and moving on.

It can be a little difficult when you think a stock has great long term prospects but then something comes along and changes the short term prospects.  Then you are confronted with the question of whether to sell, and invest in something else that will do well in the interim and come back in at a later time (hopefully the correct time), or ride out your down position with the idea that in a few years you will be vindicated.  Short term management is something that I did not appreciate well enough in 2008 going into 2009.

 

 

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#18) On June 21, 2009 at 1:19 AM, Alwayzwrong (94.26) wrote:

I, too, have held ETFs for short periods, but I have used it as a hedge.  During the beginning of the year, I held ERX to hedge against losses in some of my commodities.  It didn't really provide much of a hedge (since I bought so little).  Many of us have made the same mistake with ETFs.

I held PALM short in February...  On those days when decliners outnumbered advancers 10 to 1, PALM was the 1.  Actually, I'd rather have something blow up in my face like that than have something like my worst...

SDTH is still my largest holding (and, the only one that I'm underwater on).  Down 47%.  Yeah, I'm still holding, because management in China doesn't get much better, the fundamentals are solid, and I am willing to be patient with this one.

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