Average Up

  

Categories: Metrics, Investing, Stocks

You paid $10 a share for whatever.com but wussed out and only bought 1,000 shares when you really wanted 5,000. The stock then popped two bucks and now it's at $12. You think that in five years, it'll be at $50. So you buy another 1,000.

Then it pops another two bucks to $14. You buy another 1,000...eventually realizing that this hot stock ain't sagging back down to $10 any time soon. So you average UP your average cost of purchasing it. Lesson learned? She who hesitates is lost.

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Finance: What is a Fallen Angel?1 Views

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Finance a la shmoop what is a fallen angel? oh oh so sad I was once loved as [Sears crying]

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were we all we were angels we floated way up here above the clouds above the

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hundred times earnings high multiple-o- sphere but then we stumbled we failed

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the market turned the environment saddened competition came and we did not

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adjust so we fell as we missed our earnings numbers again and we missed

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them again and again yeah it was just like that

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a fallen angel is a company that used to be loved by everyone on Wall Street it

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was the next Google the next Facebook the next Amazon heading oh so high to [Sears rocket flying in the sky]

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the sky with no ceiling in sight but then well the ceiling actually came into

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sight and got hit and the company missed a quarter and the multiple of earnings

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the stock traded at got hit and the company fell again and again and again

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and each time flew lower to the ground from the lofty lovely views of the

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hundred X club a hundred times earnings club that's a very high multiple to be

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now single-digit world of boring companies at six seven eight times

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earnings yep no banker love barely any coverage even on Wall Street like nobody

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even bothers to write about the companies anymore [Newspaper article appears]

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it's just a bunch of vultures picking at their wings...hey! stop that yeah well

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maybe someday they'll figure things out and you know get back up there where we

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belong or where we used to or something like that it's so sad for now well

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they're just hoping their wings grow back you know like these guys are hoping [Fallen angel companies grow wings]

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yeah keep hoping there Sears

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