Shorts28 Jan 2022 16:35
I have been scaling in since the raise - I bought a tranche at 20p, more at 11.2 and I will buy more if it hits 6 and more further down - If the story doesn't change materially. That was always my strategy, I always thought this was at risk of further share price depreciation since the Morrisons announcement. It was obvious a raise was coming. I think it has been shorted since the raise and pi's are now panicking and selling off, further consolidating the downtrend. Seen it many times. Once the herd panic sets in the prices drive lower which is only too good for the shorts. Parodoxically, that is when one's conviction in the initial investment decision is tested and one needs to reflect on one's decision making process, and if not much has changed materially, buy more and bring that loss percentage down. Usually though, people get emotional, obsess about the share price and see their investment go underwater and sell - why? Because they didn't have conviction in the first place AND they didn't go in knowing they could lose on a specualtive prospect - which of course this business is.
Let's have it right, we could all lose our money here - the financial statements are not good and there are a number of uncertainties about the future financing. However, we have known this for some time, and most pi's on here started buying in since the news about Morrisons.
I would advise against selling off now as those who invested, like me, always knew that it might get a bit worse before it got better AND the market will respond accordingly to that reality. That is my tuppence worth. So not ramping or running it down. I do think if one invests more than one can afford to lose on a speculative play one will learn a valuable lesson. However, I would seriously implore you to rely on logic and reason at this stage and not anxiety, panic and impulsivity.
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