With 120,000 shares at $1.20 I notice I can now buy 120,000 more for about $30,000. That would drop my average to under $.75.

What if you bought those shares and averaged down and waited 30 days and sold again? If the stock price remained the same you would get a tax loss of around $56K to be deducted from future gains.

If you then waited a further 30 days, you could buy back if you wanted and average down again. Then sit tight or wait 30 and sell and arrive back at the starting position with a lower ACB.

Wouldn't that work? You would have to feel confident that the stock price would not drop lower in the first 30 days, and that the big buyout wouldn't happen in the 30 days after that.