I've always tried to remove emotion from my trading. It's hard to do, but I try to stick to fundamentals, facts and figures. While there exists a possibility of a take-over, buy-out or financial collapse, I peg the chances of that as fairly small. When I compare that to the odds of Liberty turning decent cash flow next year and the stock price shooting up in to the $2-$3 range, there is a considerable amount of value at $1.00 or less.

If chances are 10% that something bad will happen and we'll recover only a fraction of our investment (let's say $0.50/share), chances are 30% that we'll shift in to neutral and only make cash flow necessary to fund operations and 60% chance that we'll top $2 in 12 month's time:

0.10x0.50 + 0.30x1.00 + 0.60x2.00 = $1.55 per share

Thus, at $0.90, we're getting a steal of a deal. Adjust the odds accordingly to your own feeling as to how this company will perform. That will help you determine whether you're in the right place or not. Take in to consideration your portfolio balance as well.

If you're already over-weighted with LBE in your portfolio, this isn't a buying opportunity for you. We don't want anyone jumping off a bridge if the unthinkable happens.