SKO - Serko.com

[Balance]

Textbook failure at previous high point. Looks to me like institutional investors are still trying to acquire stock in a controlled manner though, so am expecting further medium term upwards pressure on price. Will it have another crack at 471?

Think it will take the SPP to be out of the way for the sp to stabilize.

There's $5m worth of stock to be issued at $4.04 to mainly smaller shareholders - they are not like institutions who always tend to add to their holdings after a placement or rights issue!

[t.rexjr]

Think it will take the SPP to be out of the way for the sp to stabilize.

There's $5m worth of stock to be issued at $4.04 to mainly smaller shareholders - they are not like institutions who always tend to add to their holdings after a placement or rights issue!

The SPP will have taken many smaller buyers out of circulation too, given they'll likely be waiting to partake in the offer instead of buying on market. So I'm not surprised it hasn't really tested the high.

[Timesurfer]

Likely to drift down as people cash up to buy cheaper one would guess - depends if the instos are keen to keep accumulating or are happy to sit back for a bargain.

[silu]

The only downside for me loading up at the SPP will be that my avg price of 89c is going to get destroyed. *end humble brag*

[Balance]

The only downside for me loading up at the SPP will be that my avg price of 89c is going to get destroyed. *end humble brag*

Now why didn’t we all loaded up truckloads of the stock at 29 cents?

[Leftfield]

The only downside for me loading up at the SPP will be that my avg price of 89c is going to get destroyed. *end humble brag*

Well done you! Nothing wrong with averaging up (especially when the current SP is still over 400% above!)

[silu]

Now why didn’t we all loaded up truckloads of the stock at 29 cents?

I think I was pretty dark when the SP went that low. I think I even posted here that I'm going to sell it all at a big loss. But a good nights sleep luckily stopped me.

[Balance]

Well done you! Nothing wrong with averaging up (especially when the current SP is still over 400% above!)

In fact, there's everything wrong with averaging down as a strategy (you are buying more and more of a bad story) and everything right with averaging up (you are buying more and more of a good story).

[BlackPeter]

In fact, there's everything wrong with averaging down as a strategy (you are buying more and more of a bad story) and everything right with averaging up (you are buying more and more of a good story).

It is always wrong to buy stock based on the current holdings (with the exception of following a diversification strategy). Averaging up (as a strategy) is as much nonsensical as averaging down.

It is easy to buy an up-trending stock (averaging up) too dear (just look at all the hype peaks in our well known growth stocks - e.g. talk with the people averaging up ATM at $17) and it can be amazing efficient to "average down" on a stock which just reached their all time low (buying Serko below 30 cents was clearly clever, no matter how many shares the SH already owned.

The only thing which does matter is the future development of the stock you are buying ... and this is absolutely uncorrelated to the amount of shares you already hold - and it always lies in the mist of the future ;

Only with the benefit of hindsight will we be able to assess whether "averaging up" Serko at this stage will be a clever idea ... but I can predict that the outcome (whatever it is) will be absolutely uncorrelated to whether the buyer was averaging up, down or just buying new ...

[Leftfield]

It is always wrong to buy stock based on the current holdings (with the exception of following a diversification strategy). Averaging up (as a strategy) is as much nonsensical as averaging down.
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Mmmm interesting, but I beg to differ.

I decide on a company (stock) to add to my portfolio (using a mix of TA and FA,) and then purchase in increments over time. I never buy a holding all at one time just in case I've timed the market wrongly.

I tend to buy only up trending stocks that are outperforming the NZX50 and show signs of continuing to do so. I buy more as the SP increases (averaging up,) all the while ensuring my average holding price is well below the current market average (giving me what I call is my protective moat.)

On very rare occasions I have even averaged down when I perceived the market had irrationally marked down a share that I owned. This tactic worked well for me with both XRO and ATM.

JMHO. DYOR and be accountable for your own decisions.