Quote Originally Posted by duncan macgregor View Post
A good lesson to be learned here about the worth of fundamental analysis without having any sell strategy when it all turns to custard. Needless to say most TA investors are sitting the market out watching the slaughter. Plenty of opportunity to average down in this market SNOOPY. Macdunk
Macdunk, traders would not have been in this share at all, because it is not liquid enough to allow them to 'get out' easily. Of course investors main objective is to 'invest' and pick up future dividend streams along the way. Not to withdraw from the market and sit on the sidelines sniping. So such liquidity concerns do not worry 'the investor'.

My latest purchase means my average entry price to SCT is now $1.60. That may not look so clever to you when the current market price is $1.18. However your implied assumption that $1.18 is the price for the number of shares that *I* want and indeed own is wrong. I could buy the number of shares I have now on the market today. But only by paying up to $1.40 per share (just checked the SCT market depth with my broker). The point you do not appreciate Macdunk is that the share price is set by supply and demand. That means if the demand suddenly increases (like if I wanted to buy my entire shareholding today), then the share price is no longer the quoted market buy price of $1.18!

A loss of $1.60 to $1.40 (let's leave dividends out of it this time as I know you are a well known 'dividend denier') or a 12.5% loss is not great news. But neither is it a 'slaughter'.
A 'slaughter' might better be akin to a PEM shareholder where 90% of their investment has disappeared over the past two years.

My 'sell strategy' Macdunk, is to sell when a share becomes overvalued above and beyond normal market fluctuations. In my judgement, without the benefit of hindsight, that hasn't happened yet with SCT.

SNOOPY