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No. of Recommendations: 5
Hi Jenny,

This is a personal decision and is highly case specific -- however in general, my practice is to dollar-cost-average down on a stock whose share price has incurred a significant drop: 1.) only if the original thesis for investing in the company is still very intact, and 2.) only if I am sure that the share price drop is not the result of any new events or developments that will adversely affect the value of the company, and 3.) only if I have the funds available to comfortably commit new money to that stock.

If this is a Motley Fool recommended stock, I'd suggest going to the site(s) of the recommending service(s) to see if there is an update posted with regard to the drop in share price of that stock. Also check the discussion board(s) for that stock to see if any other members are posting any insights or opinions on the reasons behind the price drop. However, I'd suggest basing your decision only on information that has been vetted or confirmed by a Motley Fool analyst/advisor -- or information that you can verify independently.

There are probably some other considerations that I am forgetting at the moment, but if so, perhaps some other members can chime-in with those!

I wish you well with your decision in this regard. If you have any further questions about this topic, feel free to ask away in a follow-up post.

RSue
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