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International Investing / Australia (All-Ordinaries)


Subject:  Re: Iocom / Optima Date:  1/30/2002  2:29 PM
Author:  harmy Number:  3427 of 6186

My catch-22 is that, now that the share-price is low, it might actually be a good time to buy and re-coup some of the losses, however I've also been burnt once

Averaging down is a big mistake - the experts never do it - they average up but not down !! I've done it myself in the past but it cost me plenty in the long run. The thinking seems to be that if the price was $50 then it's got to be a real steal at $25. However, there is no law that says that it will stay at $25 and the probability is that it will continue to fall.
Have a look at the chart for DTL - from memory I bought at around $2 - it fell to a little over a $1 where I bought more. It then fell to around 50c before stabilising. I've been followinging it recently and on the back of a good earnings report it it now at around 75c and rising.
I'd suggest waiting for the next earnings report, insider buying or some other positive report before jumping in again.
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