Member Info for ToffAppleton1

Tropica

“I don't really get the point of averaging down in general,”

One needs to distinguish between averaging down and size -positioning.

For example - when I trade a stock - I never buy in a single transaction- I buy in 2/3 segments. Trade allocation ratio - as I refer to it. ( you heard it here first because I coined the phrase)
And I also know whatever stock I buy is likely to fall further (even I can’t catch bottoms)

But averaging down continually is a loser’s game. Rather than face up to a bad investment many novice traders average down multiple times and end up “All-in” in a single share - usually the wrong one.

Buffett says it’s alright having all your eggs in one basket - as long as it’s the right basket.
Buffett and Munger also pour cold water on diversification. Why buy 30 companies when you can just buy 3 or 4?

But for retail investors who don’t have an encyclopedic knowledge of stocks like Buffett and Munger - diversification is best.

And that applies to almost everyone of us

Including me.

Many novices over-quote Buffett on these boards. But what they overlook is - what’s applicable to investment gurus is not necessarily applicable to inexperienced retail investors.

Rep

“Why has this dire situation come about, why did Mooky and Co ruin a perfectly good company with ambition to be the biggest?“

The answer to that lies in Greek mythology.

Icarus was warned, while attempting to escape from Crete, not to fly too close to the sun. He ignored the warning and his wings of wax melted - and fell to earth and drowned.

Allegorical I know - but as with all Greek mythology it allegorizes both human fallibility and hubris.

That’s why the myth gave rise to the idiom "don't fly too close to the sun".

And Mookey has proven to be a latter day Icarus.

But unlike Icarus who drowned in water…
Mookey drowned in debt.

This is what we know..

Cineworld are $8.9 billion in debt
They’re insolvent, meaning breaking banking covenants and being unable to service that debt.

They’ve announced their intention of bankruptcy

Three years ago the shareprice was over £3
Now it’s 1.9 pence.

Novice investors/ traders have been buying all the way down from £3

And they all got wiped!

Anyone on these boards still trying to suck people into this catastrophe ought to be banned.

Cineworld is dead.

Bonkers

“10:1 would be great at 2p a share! 20p and beyond very doable in the short to medium term! GLA!”

Whatever it is you’re smoking - I want some of it.

Send me the contact details of your pusher.

Reality Sucks!

Stuart

“What is the most amount of money someone has invested in this company”

Good question…

The answer is -whatever amount he invested, he lost the lot.

Hope that answers your erudite question

ATB

Toff

Jones

“Who should I invest in?”

After your Cineworld Investment Tragedy

Do you have any money left to invest?

If not I suggest you invest in a job.

And Now He Faces The Final Curtain!

Poorinvestor

“Just bought another £10k worth.”

Sure you did!

On your Demo account!

Jock

“This stock isn’t up your street don’t buy “

Ain’t that the truth!

Strap

“I joined this to learn....all I've learnt is not to back a sinking ship.”

Don’t underestimate that
It’s an extremely valuable lesson

About 80 percent of retail investors lose money. So whatever you do don’t follow any advice offered on these type of boards

Woolworths
HMV
Debenhams
And countless other failed business models.

All marked down to pennies or a fraction of…

All suspended
Shares untradable
Shareholders wiped out

Company BUST!

The league of deceased companies are ready to welcome Cineworld to the club…

Jones

“in the millions! In my opinion something is coming!”

The buys are shorters closing their positions.

But you’re right about something coming….

It’s spelt…

BANKRUPTCY

Tommy

“there is a clear over-exaggeration of their current position today and the actual likelihood they will survive.”

You sound like someone desperately trying to persuade themself their Cineworld investment catastrophe will still come good in the end.

Aren’t you aware the curtain could come down on Cineworld any day - the shares could be suspended after market close today.

In denial to the bitter end!

It’s up there with…

The Texas Chainsaw Massacre

Except this time round investors are getting massacred!

Poker

“Panmore just seem to have updated an out of date figure of 300p”

That’s the beancounters following the shareprice not the shareprice following the beancounters.

To save themselves from humiliation…

How often do you see that in uk markets!

I remember PG had Woolworths as a buy a few days before it went bust.

Should have read

I’m also glad I only took out a small position.

I can’t seem to write a post without mistakes these days. Hope dementia not on the way:)

Poker

I usually avoid the retail sector but I do have a small position in Halfords. As retailers go, the business model is strong and diversified. I like the fact they took National over and expanded the business. But I’m also glad I only took out a same position because retail stocks seem to get trashed more than most, with good reason mostly, but not so with Halfords IMO.

Kvetching

“Panmure & all so called brokers targets should be ignored, “

You are so right in what you say. The people responsible for these figures are brain-dead beancounters. They lack the ability to do any real job so end up as analysts (beancounters)

Once you start listening to these non-entities your trading days are over. In my considerable experience the average retail investor can form better conclusion than the average beancounter - yes they really are that bad!

Lvu

“I think it will go down to 1p and then a slow trickle into the 0.43p,then all over.”

No that’s not the way it works. It’ll be suspended overnight. (Probably over this weekend) Debenhams for example was still around 3/4p when it got suspended

This foolish idea that shares have to fall to a fraction of a penny before getting suspended is only believed by hardcore novices.

HD

‘there are employees of Cineworld who, through no fault of their own’ will lose their jobs.

You’re talking trash. Every cinema in the land isn’t going to close down because Cineworld went bust. They will be sold as ongoing concerns. The demand for cinema remains and so will the cinemas.

Cineworld didn’t go bust because of the business, they went bust because of the appalling way in which it was run.