re: EXXI - hitting new lows everyday

should have put it on black

Has anybody on the thread actually been successful at trading penny stocks over the long-term on a risk-adjusted basis? Serious question.

I could sell now and wind up with a 8,400 tax deduction

I bought it high, high. It wasn't anywhere near a penny when I bought it. I held, and then sold some (lucky) before their acquisition. The rest I averaged down on hard, and got out with about a $10K loss, and that could have been much worse.

I was lucky becuase I had anticipated EXXI being part of my permanent energy sector holdings, so it's not like I had a small amount. I think they might have even been paying a decent divided at that time.

You talk about a bad decision. I had thought this would be sitting right next to CVX and XOM in my portfolio. The timing and price paid for their acquisition was just horrible. Even though a lot of people were thinking oil was artificially high, not many saw what would happen next. I didn't. I expected some sort of downward movement, but never imagined I'd be thinking about how long oil could trade sideways at this level.

It impacted my Directv/At&t strategy when all this exxi stuff happened. I own at&t, and I was skittish on that deal. I just stayed put, but I watched at&t like a hawk for a long time after that. I thought fool me once ad infinitum...

Cramer had their CEO on a tanker and was talking about how exxi would be a buy and forget stock. I'd really started to pare down on trading already at this time, and I remember thinking why not a dividend paying oil stock, and sell something at a gain in a sector where I was overweight?

Best laid plans, and a good lesson for me. Polaroid and Radio Shack's happen from time to time in what appear to be very stable stocks.

Ah well, it goes like it goes. To have never lost means one has never taken a riskier venture. Or is just a magnificent investor. I suspect the first as I don't believe in the second.

I don't have the balls to even try shorting this stock.

frick me it's up 70% right now

Yea I figured that would happen. Idk if it will stick but I think it will.

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TexanWhoDat74

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It's extream high risk right now. I don't know why it's up the last few days but they opted not to pay a intrest payment due so they currently are in the 30day grace period. Some say bankrupt is on the way. It may or may not be. If they can re structure there debt with the holders they will be fine if not it may be BK time. I am only learning as I go so take it with a grain of salt. But your right before this oil crash it was 25-30 so getting in at even .80 would yelled stupid gains IF it goes back to that range.

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potential bankruptcy is keeping me on the sidelines

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Seemed too good to be true.