"A company would never receive financing if the lenders didn't see the potential of the borrower succeeding."
Wrong. The company can fail and GHS will make money. Their confidence lies in their own ability to sell the shares they get (at either a 20% or 37% discount) quickly enough to turn a profit. That is what they are presently doing and soon will have mitigated all of their risk exposure. The equity funding deal is fundamentally toxic to shareholders and leaves hardly any means of loss for GHS.
"If you're already financially committed, it seems like the best plan of action is to wait it out and not sell at the current rock bottom stock price."
The buy and hold, long and strong mantra's are exactly what brought the upside down, financially committed to this point. A little bit of taking profits on spikes over the past couple of years and most who are presently sitting on big losses would not be in that predicament. Also, what makes you believe that the current prices are rock bottom? It's my opinion we've got a ways to go before we see a reversal.
"Look at it this way, the stock is so low you've pretty much lost your investment anyway if you sell. So why not just quit the obsessing, and looking for someone to blame and wait and see what develops in the New Year?"
No, look at it this way. Why not salvage what you can by selling now. You get to take a tax loss and you will have the option to re-enter at what I believe will be a much lower price. There is virtually little chance of a reversal before they get to a point of product launch, so your tax loss will stand having met the 30 day standard. If you re-enter with all that you took out, you will have many more shares which will take less of a reversal to make you whole. On the other hand, if the company fails, you have at least extracted some of your cash. So, continue the hold strategy that brought you here, or take a proactive position with your money. Wouldn't you rather go down with a fight than a whimper.
"Don't forget, the people running this company put themselves at risk of facing a class action lawsuit for misrepresentation if they claim bankruptcy and take the money and run."
If they are bankrupt, they are bankrupt. What happens to the principles has no impact on YOU fighting for YOUR MONEY.
"I'm sure they don't want that on their records."
And I don't want it on my record that I did nothing but sit and watch my investment disapear.
"As for myself, I've been averaging down. With the price so low, what does it matter if I invest a bit more at this point?
Averaging down makes the most sense to me."
Averaging down only makes sense if a reversal were imminent and/or readily able to forecast. Lacking that, averaging down looks a lot like putting good money after bad.
"You just never know. If they succeed with the new line, a lot of people who are running scared right now, might be kicking themselves in a few months."
If, as you say, we're talking about a few months, then there is ample time to take a tax loss and some time to decide whether to get back in. Being proactive is not running scared.
Wrong. The company can fail and GHS will make money. Their confidence lies in their own ability to sell the shares they get (at either a 20% or 37% discount) quickly enough to turn a profit. That is what they are presently doing and soon will have mitigated all of their risk exposure. The equity funding deal is fundamentally toxic to shareholders and leaves hardly any means of loss for GHS.
"If you're already financially committed, it seems like the best plan of action is to wait it out and not sell at the current rock bottom stock price."
The buy and hold, long and strong mantra's are exactly what brought the upside down, financially committed to this point. A little bit of taking profits on spikes over the past couple of years and most who are presently sitting on big losses would not be in that predicament. Also, what makes you believe that the current prices are rock bottom? It's my opinion we've got a ways to go before we see a reversal.
"Look at it this way, the stock is so low you've pretty much lost your investment anyway if you sell. So why not just quit the obsessing, and looking for someone to blame and wait and see what develops in the New Year?"
No, look at it this way. Why not salvage what you can by selling now. You get to take a tax loss and you will have the option to re-enter at what I believe will be a much lower price. There is virtually little chance of a reversal before they get to a point of product launch, so your tax loss will stand having met the 30 day standard. If you re-enter with all that you took out, you will have many more shares which will take less of a reversal to make you whole. On the other hand, if the company fails, you have at least extracted some of your cash. So, continue the hold strategy that brought you here, or take a proactive position with your money. Wouldn't you rather go down with a fight than a whimper.
"Don't forget, the people running this company put themselves at risk of facing a class action lawsuit for misrepresentation if they claim bankruptcy and take the money and run."
If they are bankrupt, they are bankrupt. What happens to the principles has no impact on YOU fighting for YOUR MONEY.
"I'm sure they don't want that on their records."
And I don't want it on my record that I did nothing but sit and watch my investment disapear.
"As for myself, I've been averaging down. With the price so low, what does it matter if I invest a bit more at this point?
Averaging down makes the most sense to me."
Averaging down only makes sense if a reversal were imminent and/or readily able to forecast. Lacking that, averaging down looks a lot like putting good money after bad.
"You just never know. If they succeed with the new line, a lot of people who are running scared right now, might be kicking themselves in a few months."
If, as you say, we're talking about a few months, then there is ample time to take a tax loss and some time to decide whether to get back in. Being proactive is not running scared.
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