RE:RE:True or False? You missed the point … Buffet’s strategy is to buy what he considers undervalued assets but I can’t recall him being in the habit of averaging down which is precisely what you and maybe other EUO shareholders have done.
That said, it’s not impossible to make a case for averaging down but the prerequisite for such a case is having made a prior mistake. The mistake of not selling as fundamentals deteriorated.
There was lots of time to sell EUO in the mid teens when it became clear that SICPA was fighting an uphill battle, XwinSys not making any headway and Xenemetrics and Croptimal eating up copious amounts of so call R&D dollars
Those who did may have taken a minor loss but could come back in right now at 1/3rd of the cost while having this capital freed up for +/- 2 years to invest elsewhere. Even jumping some sort of index fund (i.e. INDU) would have provided a near 40% return in these 2 years.
To now argue that EUO should be bought because it might / should be a takeover target is essentially a clear admission of bad fundamental analysis as in admitting that EUO management blew it big time ever since the SICPA deal.
Should some sort of takeover deal occur which IMHO is rather doubtful, it will essentially be for cash value plus maybe a small premium for the listing which will not make the “averaging down crowd” whole.
It’s this bad habit bad investors have of putting lipstick on a pig to defend / justify their own trading mistakes.
PS: You / others are now pinning their hopes on this newly created team.
There is absolutely nothing new about these guys. They have been around for years, collected their director’s fees and SICPA deal bonuses while not giving a hoot what was happening.
That’s the reorg committee you are pinning your hopes on? Good … luck!
They have nothing to lose and everything to gain. New fat salaries, potential deal bonuses and who cares about share price as these clowns have virtually no shares.