LVLT Help

[gsfrobert]

Back in 2008 i had a good feeling about LVLT Paid 2.53 a share over two years later its at 1.50 a share with no signs of moving.

I don't know to cut my loses and run or stick it out help?

[Slug]

My gut reaction is to mention my buying JSDA at .50 a share because I liked the taste, watching it languish for 2 years, selling it, and watching it go to 9 or something like that, but each situation is unique and requires its own analysis.

You're getting no dividend with LVLT so it's basically just a loss sitting on your books until you execute the trade. Some questions are in order though before a decision can be rendered:

Is this in a taxable account?

Is this in a tax year where you will need to offset some gains?

Is this basically play money for you or is it money for a need?

What percentage of your portfolio does LVLT represent?

If you had more money today, would you buy more now?

Trades like these are often lottery tickets (see NBG or CITI for another example). Sometimes they pay out and other times you're sunk. With a lottery though, you either win or lose within a few minutes or days and it's absolute. With these stocks, you can always "what if" your buy or sell.

[jpg7n16]

ummm that company seems horrible. when was the last time they made money?

I say sell cause it's a horrible company, not because you're cutting losses. Next time do research and don't invest on "good feelings."

As of 2008 (when you bought it on a feeling), the company had lost money for 8 straight years, with no real signs of improving. - I can't post links yet, so go to Morningstar. Type in the stock symbol at the top. Click "quote." Then click on financials. And scroll down. You'll notice that their net income has been negative for the past 10 years.

Then Google "warren buffett florida university speech" and click Videos at the top of the page. Watch the 88 minutes video on Google. That will give you a better idea about what to invest in next time.

That is a gambling purchase, not an investment.

Or if you're just out for gambling... well then good luck!