Buying more losing tickets
July 14, 2006 | Filed Under Investing in stocks
I bought 2000 shares/stocks in a growth company with P/E ratio of 18-19 a few months ago. Was a good deal I thought. Since then, the share price have declined and the company is trading at a P/E ratio of 12 and next year (forward) P/E of 7. When the shares started declining I bought another 1000 shares. Two days ago I bought an additional 1000 shares. The last two days there have been a further decrease in the valuation of the company.
I am considering to add another 2000 shares if the forward P/E falls below 5.
Will post a new update about this in 1 years time. Hopefully the big bet has paid off then.
If not, I can always start a saving my change blog.
Comments
Leave a Reply