I decided to cut my losses on this one. The market tends to create dilemas. The share price is down, and it looks cheap based of historic values. I decided that the company is junk, though, and it was best to sell. I am reminded of a quote by Einhorn about selling when you realise you are wrong.
This thing could bounce back, I don’t know. But it looks incredibly risky.
Quoting off the ADVN board for CPP:
No matter how attractive a proposition looks on paper, where there is uncertainty, the best course of action is to stay away. Every time I have held shares where I have averaged down AFTER suspension, I get burned. Marconi was a good example in recent years.
I’m not sure I agree wholly with the uncertainty comment. It’s the uncertainty that creates the opportunity. Is anything ever really certain anyway? Very tricky.
We shall see down the line whether I had made a mistake in selling.
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