Should I cut my losses? I own stock?

Question

I bought SIRI at $3.63 and now its at ~$3.40. Its the first stock I ever bought. I own 25 shares. I was planning on buy 25 shares for the next few weeks, but its been going down. So should I cut my losses or buy more?

I bought SIRI at $3.63 and now its at ~$3.40. Its the first stock I ever bought. I own 25 shares. I was planning on buy 25 shares for the next few weeks, but its been going down. So should I cut my losses or buy more? And the comm. was $7 to trade.

Answer 1

Everyones stock went down the last week. You don't even want to know how much I lost.

But, the market recovered a bit the last couple days.

As to whether or not you should sell Sirius, I don't know. Has anything fundamentally changed as to why you bought the stock in the first place?

The first stock I ever bought went down and never did really do what I'd hoped for but you learn what to look for in a company and what to invest in. It's hard when the first stock you ever bought isn't making money. After you've invested for a few years, you'll find that sometimes, you just make a bad choice. Overall, you'll hopefully make more good choices than bad and will make money in the market.

Over the years, I'm made money in the market but I am a long term investor. I buy and hold. Some of my stocks were horrid in their first year I owned them but I believed in the company and hung on. Now, they're great stocks and I've made lots of money on them by holding them for 5 or 6 years.

I don't know enough about Sirius to really tell you whether or not to sell. I know they merged with or are going to merge with XM but I haven't researched their financial's enough to know if they are one I would buy and hold or not. Do some more research on them and decide if this is something you believe will make money over the long haul.

Answer 2

well SIRI is NOT going to the level where XMSR is. XMSR clearly won the war but regulators are saying it wont happen. If it does get approval there will be a nice pop but you would of been better off with XMSR for they will get 4.6 shares of siri for every share they own. Put a stop loss at $3 even if it hits it you are out. Considering selling it a 4.50 range.

For your first one you really picked the wrong one but always learn from your mistakes. Mine was jumping in on the hype of the merger when it broke lost some and put a buy at $14 knowing full well it will come back down to that but added a stop loss of $13.25 which it quickly hit last week. $13-14 range is a good buying range any lower or higher forget it (xmsr)

Answer 3

Most people do not buy stocks to lose money. Hopefully you bought your stock after careful investigation of the company made you believe that the stock price was less that what it was actually worth, or would be worth someday in the future. If you still feel that way about your stock, then hold on to it. If things have changed and you no longer see a good future for the company, you need to get rid of it. Remember that you are not just losing $.23 a share, but the broker fees for the buy and sell also.

Answer 4

You own 25 shares and have taken a 0.23. How much did it cost you to buy the stock? and how much will it cost you to sell the stock? My broker charges $8.00. According to my calculations you are down about $6.00. If your broker commission is anything like mine, the commission is going to darn near wipe you out.

There is a merger in the works. Whether the government will allow it remains to be seen. personally, I do not think they have any choice. SIRI and XM are both about to bleed to death.

Buying the stock is a speculation that the merger will go through and eventually sometime in the distant future the new company will begin to make some money if it survives.

However, a more likely scenario in my opinion is that it will eventually file for bankrupcy, print up a bunch of new stock certificates and distribute them to the people to whom it owed money. Probably about 0.20 on the 1.00. The old equity investors will be able to use their stock certificates to line the bottom of their bird cages.

Of course the Karmazin will not be feeling any pain whatsoever. Those jerks never do.

Answer 5

Siri has been in a downtrend since April 2006. IT may recover if the merger with XM goes thru and the company ever makes a profit. You need to read all you can on this stock to see if you feel like it may recover. I would not advise buying more until the stock turns and begins an uptrend. Always look for stocks in an uptrend. Many free sites such as stockcharts.com and bigcharts.com have stock screens available. and a lot of information is available from Yahoo, msnbc.com. Reuters and others.

Answer 6

Historically, very sharp drops like the one we saw last week are usually short-lived. (Not always, of course, but often.) So, I'd say don't panic and ride it out.

Stocks in general are higher-risk because of their volatility. If you are looking for a few-weeks-long investment, that is considered short-term, and anything can happen to a stock. Long-term means a few years, and you are more likely to make money if you invest for the long-term and pick a good stock.

For a short-term investment, I'd consider something like a term-deposit or CD.

For investing advice, I'd check out the Motley Fool web site listed below.

Answer 7

Are you investing or trading? If your are investing and can hold on for the long term, you might be able to ride out the storm. If you're trading short term, then it looks like there's little bit of support in the high $3.30's that might cause it to bounce. Maybe see how that plays out and you might be able to exit your position at a more favorable price. I personally would not buy more as i don't like adding to a loosing position.

Answer 8

Do not buy more.
Do not sell yet.

I suggest a Stop at $2.91 (20% Loss)

Answer 9

If you can wait hold on to them