Hang on
while i get my glasses!! Right that better can see your
stunning contribution now. I would not really consider it
averaging down , actually averaging up !! . How so you say,
because say i the new lot of shares bought would be earning more per share
than the previous lot bought. A long term investor should be looking at the
earnings he is receiving for his money, rather than worrying constantly what
the shareprice is up to. p/e and PEG etc tell you when a stock is cheap moreso
than the shareprice
Nick
| 1. The astute investor would buy more, realising that
he is gaining
|fantastic earnings per share
bought
Ahhh averaging down :-)
|2. The company realising its owbn shares
were a huge bargain would
|initiate a buyback
|3. Other companies would begin circling
|
| The effect of all this
would be a rise in price back to
|realistic
levels
See IRG research reports
