Not all stocks bounce back......far from it. Hope this one does but there are no guarantees no matter how good a stock looks.

I have read here that a good rule to follow is to not exceed a certain percentage of investment in any one stock in your total portfolio. It is perhaps not worth the risk when you are already at that limit. There are probably several reasons that people with higher averages are not averaging down and perhaps that scenario is one of them. I don't think that anyone should say that they are wrong without knowing the situation and even then, should they?

I borrowed money against a line of credit to average down in NOT. Many would say that I am stupid to do that but that is my decision. Goldfinger said something to the effect of managing risk. That is a personal thing and everybody is different. In my case I have a plan to settle the line of credit in case I lose my entire NOT investment. Why would somebody invest more in a stock to average down if it makes them feel uncomfortable? I discussed NOT at length with a few people over the last couple of weeks and we all felt that it would go up substantially over the next few years. However, I did not buy more. I realized that I have to stick to a limit or I will feel uncomfortable. You see, my plan doesn't work if I was to lose more than what is already invested in NOT.

When I first bought at $5 people were saying what a good deal I would be getting. When I averaged down at $3 it was an absolute steal. Remember all the great deals? I took a risk at around .50 that was manageable for me but would not be for everyone.

Just because a person isn't buying more NOT at prices much less than their average doesn't mean they are making a mistake. Often that decision is very wise. They may not have the money and don't want to borrow. And, they may feel that there are better opportunities to consider. Or, they may act like the hedge funds and stick to a certain amount either dollar wise or percentage wise that they will invest in any one stock. Not saying that they are right in this case because I am more of a gambler and I did the opposite. But, I'm sure not saying that I did the right thing either, even though I am up a bit now. However, I do think they are likely the ones who will win more over time than me the gambler.

Nice to see the price rise, it is good for all strategies, if you already own Noront. Brent