CANEXUS CORP 6.5 PCT DEBS T.CUS.DB.D

Final thoughts......

[pm1231]

I have to admit – the discourse on this site over the last few days has been both fascinating and telling why retail and less seasoned investors always get burned.    It’s harder and risker to make money when buying “high” and trying to sell “higher” (as we will see tomorrow).  Despite some rather thorough analysis by myself and Nawar suggesting the probability of a dividend cut was very low at this point, many still chose to sit on the side lines out of fear.  There is no such thing as zero risk and with upside returns (that’s usually called a scam).  You have to risk capital to make capital.  Even when it was suggested that the CEO was fired due to past performance or lack therof and had nothing to do with future prospects - it amazes me how many chose to jump to wild unsubstantiated fear-based theories rather than focus on the simplest answer that was reiterated a few times (he was simply incompetent).  Lastly – I even tried putting my money where my mouth is by disclosing my position (which I increased to 100,000 shares at an average cost of $4.88 after today) to show how confident I was and quell the naysayers who were all talk but not disclosing their positions – and even that didn’t work….some still stayed on the sidelines after that vote of confidence.   

In the end, it does come down to risk tolerance – but I really wonder how many do their homework – and fully research their positions before placing a bet.  The best way to manage risk in your portfolio is NOT going on stockhouse to hear what a bunch of armchair quarterbacks are forecasting – but doing your own homework and comparing your notes with analysts and others (who have done their homework) may be saying.  I actually thought that was what stockhouse offered but apart from Nawar – there was very little additional insight worth corroborating/debating.  If you don’t understand what you are investing in – you should NOT be taking any position quite frankly (you have better odds at the casino).    The last few days was never about finding a bottom – no one has a crystal ball.   This was about buying an asset at a cheap price if you know the current value (which is in the $6-7 range) and holding irrespective of where the price moved.   When I posted you were getting $300 million for $1 (NATO for free at current prices) – even that failed to convince many. 

Lesson learned – separate out the noise – do your due diligence, know your risk tolerance – place your bet – then LEAVE stockhouse for a few days to see how it materializes (the latter I plan to follow by taking a long break from this site)