directors buying, page-11

101,
I wouldnt be getting back in. I only owned the stock very briefly after the first initial downgrade. I had followed the business for a while, it had never traded cheaply on PE basis, so never gave me an opportunity to buy. I sold soon after when I realised things were afoot.

I'm not saying you cant make money out of CCP going forward, the truth is I have no clue/confidence/reasons to believe that the sp will go up, nor down. A great deal of "investors" believe that if a share price has gone down substantially, it must go back up.

I dont subscribe to this train of thought and in this market, why would you. I would prefer to own stocks that actually have good reasons to rise with as little risk as possible. If I want returns of 300-400%, which is what I suspect many CCP holders think is possible in this stock, I go to the casino and pick red or black. At least that way Im not waiting around for months or years.

The fact that the share price used to be higher does not classify as a reason to hold a stock. Nor is "hoping" it goes back up. Would you put thousands of dollars on a horse in the "hope" that it wins? Ask the people that bought stocks on the way down in the tech boom. Onetel was once at $19 a share, I was a broker at the time and the amount of people that called me to buy it on the way down all the way to 15c, saying "Oh it has to go back up. It used to be $19"... Too many to count.

There are over 2000 stocks on the ASX, plenty of which are good sound business, growing earnings year on year and in this current market, many of them are cheap as chips. CCP is not one. Why hold shares in a company that has performed horrendously?

People feel the need to make money out of stocks that they have lost money on before. Its a natural human reaction. Its like people that sell stocks in their portfolio that they are up on and keep the ones they are down on because they dont want to sell something at a loss. Who would you put money on in a running race, the guy who always puts in a great performance or the guy who is out of form and continually disappointing?

If you cant take a loss on a stock, then you are not an investor. Nobody is perfect and wrong decisions are made by people a lot smarter than you or I. The difference is, a good investor doesnt get emotionally attached to a stock and can sell it when the reasons why it was bought are not longer valid. For people who bought the stock before the huge fall, I cant imagine there reasons for buying could still possibly be valid. So why I own it I say? It's amazing how passionate people can get about stocks (evident through posts in hc) when these are the same stocks have actually cost them large sums of money... Dont get emotional.

As I said, I have no clue if CCP is going to recover. I think it is a bit of a lottery. I cant see any reasons why the share price is suddenly going to jump. The business itself is clearly not running as it should. I hope for those that bought that it does, because a lot of investors in CCP were mislead by management and suspect accounting practices. ie. No fault of the investor. I just think there are important lessons to be learnt here; dont get emotional about stocks, historical prices have no place in determining future prices. Let your profits run and cut your losses. Invest in good, strong companies.