RE: Myprotein article29 Apr 2023 03:56
Respectfully, I disagree. When you put it as simply as that, then yes, buying at £5 and selling at £2 is not ideal. However it’s unlikely that many shareholders are facing that scenario because the SP fell over 90% during that period, I must repeat, over 90%.
That staggering fall would have had investors do the following 4 things;
1) Absolutely nothing and hold - Let’s be honest this is the most unlikeliest of scenarios. People just don’t watch their money vanish by 90% and do nothing.
2) Sell completely during the drop, probably saved yourself further losses here unless you were unfortunate enough to sell at 30p, again quite unlikely if you’ve brought at £5 and decided to call it quits there. If you decided not to brought back in then you wouldn’t care what price MM would have this deal for because if you’re out, you’re out.
3) Use the drop in SP to continuously average down, now this is what many people did, including lots of the people on this board. In this case, your average is no longer £5 and closer to £2, seeing as you’ve averaged down when it was a penny stock which it has been for the past year including the past week.
4) Sold whilst it was dropping and then brought back in during its lows. Again, a scenario many have done there, shorting the stock which we obviously know all about. A shrewd move and one that would have paid off and certainly seen you lower your average to the levels of £2 or below.
This is how I see it, I just don’t see how you can say that MM has screwed over the shareholders who brought in at £5 knowing the scenarios above. Also, scenario 3 is the most popular and obvious option and something many investors can still do if you truly believer it will be gone for £2, after all it’s still a penny stock as it stands.
We’d all love for a deal to take place for £4 or higher but expectations are important for your own sake and your own mental health. If someone told you during Christmas when this was floating at 40p that you could make 5x that here, you’d have the best Christmas present ever and surely take it in a heartbeat.
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