All in a day's work

Cosco Corp, big brother in the Shipping Industry. A massive drop from it's lofty heights of $8. Till date, a drop of 62.5%. That's a ugly % drop by any standards. However, this counter also appeared in my shortlist not too long ago, targeted at around $3, again for trade. This price is the gap resistance formed around Jun 07 and has yet been seriously breached.

Similar to Chinamilk, as posted before, this counter is still within is downtrend and has, on numerous occasions tested it's resistance but failing to close about it.

Something that is different from Cosco to ChinaMilk is that there is still a lot of selling pressure. Something that I'd keep in mind and be prudent of if I'm entering a position in this Company. I believe even now, there are still people who are hoping that Cosco will rise to it's once high of $8 and deem that the currect px is cheap, but think again.

1. Even though, fundamentally, this company can be very profitable, but was $8 over-valued then?

2. With the current volume of selling pressure, would it not be better to wait than load up more, hoping to average down?

3. In a selldown, Market is irrational. Selling are down based on emotions more than fair value.

Be prudent. Don't buy based on rumours or "hear-say", they are not accountable for your profits or loss. =) My post here is one such example!