C - Does anyone ever average down?

Plenty of stocks, especially in the financials, have dropped 10% since C was trading at $51. You have an investment plan that made sense to you, maybe you should stick with it.

If, at the time you would make your next scheduled stock purchase (I don't know, is it once a month or just whenever you see something you like?) C is the BEST OPPORTUNITY you have found in the universe of stocks, then and only then, buy more.

Make sure you understand what you will do with the additional shares. Are you holding those for a year as well? Are you buying them to try for a breakeven?

That being said, if the fed starts cutting rates, high yield stocks might benefit. There is just a dark cloud over the financial sector right now, raising the question "is it time to be greedy or fearful?".

I really want to pull the trigger on C or probably BAC, but I am a cheap SOB and I still think I can get them cheaper.

Final thought: take a look at the % of your portfolio C will occupy if you add. if it is a significant % (only you can decide, but I'm thinking 20% or more) then look elsewhere. Plenty of other opportunities out there.
 
Does anyone have a method, system, criteria for averaging down? For example, buy an equal amount of shares, or original dollar amount or half as much or other criteria.


Depend from your risk profil'

1. If you are normal operator ,close position no doubt

You wrote about C .Author suspect ,that operator in
in this kind of position is not risky .
#####################################

If you would average and loss ,broadly opinion would say
that you was greedy,stupid and you would broadly unsatisfied
(negativ emotion's)

2. Objective's and means

IF you are risky ,strong scientific point from game theory

a. advice as no bottom fishing,no averaging down would have limited value .
b. Martingale game have alsov some value as method

Great reward in history of civilizacion related to great risk
(Most rich person -Thengiz-Khan)

your respectfully
 
I do when I'm investing.

If you've done your homework, and you have the company down cold, then averaging down is a good strategy.

That's different from trading, though.

I own C, and will buy more the cheaper it gets.

C got down to somewhere around 1.5x book, if not cheaper, five years ago, and had a yield over 6%. It is at those levels where I'd back up the truck.

I maintain a once in a generation opportunity to buy financials will arise.
 
Quote from Toro KMA:

I do when I'm investing.

If you've done your homework, and you have the company down cold, then averaging down is a good strategy.

That's different from trading, though.

I own C, and will buy more the cheaper it gets.

C got down to somewhere around 1.5x book, if not cheaper, five years ago, and had a yield over 6%. It is at those levels where I'd back up the truck.

I maintain a once in a n generation opportunity to buy financials will arise.
More...

Toro KMA - quote from you the other day :

09-08-07 04:39 AM

I think a once in a generation opportunity is coming to buy the banks, but we're not there quite yet.
____________________________________________

Be so kind and elaborate when is the time when"we´re there" ??? Maybe you can indicate a forward P/E ratio

forwardpe.gif


for the next couple of weeks / month or specify on expected cash flow generation or PEGY

PEGY%20Ratio.gif


???
 
And if I may add another "useful information" on C =>

Citigroup Inc (NYSE: C)
July 20, 2007

Citi Reports Record Income from Continuing Operations of $6.2 Billion, Up 18%

Record EPS from Continuing Operations of $1.24, Up 18%

Record Revenues of $26.6 Billion, Up 20%

Record International Results with Revenues Up 34%, Net Income Up 35%

Record Revenues and Net Income in Markets & Banking and Wealth Management

Four records in a row ? WOW !:p

Management Comment
“We have very clear priorities to drive growth and we are executing on all of them. We generated record revenues, up 20%, and record earnings from continuing operations, up 18%, both driven by our record international results,” said Charles Prince, Citi Chairman and Chief Executive Officer.
 
I average down on C on a scalping perspective everyday, all day. But of course I'm only going short for the time being.
 
Quote from u21c3f6:

I recently bought C at 51. I tend to buy a different stock each week and hold for a year. Over the last few years (rising market) there were very few that fell more than 10% so quickly. Now with this "correction", C has fallen quickly and I am considering buying more C (I do understand that it can continue to fall).

Does anyone have a method, system, criteria for averaging down? For example, buy an equal amount of shares, or original dollar amount or half as much or other criteria.

Joe.

Edit: Typo
More...

was never able to understand people who average down... Why they don't average up??? it's same simple but more logical IMHO
 
Quote from u21c3f6:

I recently bought C at 51. I tend to buy a different stock each week and hold for a year. Over the last few years (rising market) there were very few that fell more than 10% so quickly. Now with this "correction", C has fallen quickly and I am considering buying more C (I do understand that it can continue to fall).

Does anyone have a method, system, criteria for averaging down? For example, buy an equal amount of shares, or original dollar amount or half as much or other criteria.

Joe.

Edit: Typo
More...


Never , ever average down. Let the losers go.

USE stock repair strategies, that gives instant credit for the partial loss and lowers breakevens to half the amount lost.

Never ever average down.
 
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