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

RE:RE:Lesson Learned from Superior Plus - Storyline

[Kherson]

BlueCollar51 wrote:
ocean; I had a position in SPB (my ACB was a bit more than $11) when they slashed the dividend and the SP tanked. After the dust settled a bit I concluded that the dividend cut was the right thing to do and they had a new CEO with a good reputation in place. Instead of selling I increased my position by 50% at a bit more than $6. The SP improved nicely to a bit more than $11 in a few months. Then they announced that there was a potential CRA issue. The SP tanked again. I bought more at a bit more than $6. The result was that I had twice as many shares as I had started with. The SP recovered nicely in a few months to above $11 and I sold.
 
The result was that instead of panicking and selling at a substantial loss at the bottom I bought shares “on sale” twice and turned what would have been a substantial loss into a 30% profit.
 
I don’t believe in averaging down for the sake of it.
 
I do believe in adding to a position if the shares are “on sale” and I think that the current “problems” that the company is experiencing are fixable.
 
I increased my CUS position by 20% a couple of days ago at $2.41. I may add some more in the near future.
 
Although there is no “guarantee” (there never is) I am optimistic that Canexus’s current problems will ultimately be fixed. It will take some time and a bit of patience will be required.
 
As Always, Do Your Own Due Diligence; It’s Your Money !!

Did Blue really learn his lesson?
Kherson