Canwest drops again… no big deal!
I am watching Canwest Global Communications very closely since I have (depending on the day) about 10 thousand dollars in this stock (20 000 shares). The bad news just keeps coming which makes me wish I bought all my shares in them a little later as they just keep dropping!
Why 10 thousand dollars isn’t a big deal
I am up over 14 thousand dollars profit since I began on the stock market at the end of November so this is monopoly money I am gambling with. I knew when I first started on the stock market that I had to play with money I could afford to lose and so, this may be a big amount of money but if Canwest went under tomorrow, I still would have made more money on the stock market than if I had put this money into the bank.
Canwest will revive
Canwest is being hit by a double whammy at the moment, sure, they have a lot of debt and banks are refusing to lend them more (sound familiar) but they are a very asset rich company with heavy influence is Canada. The other problem they are suffering from is the “economic crisis” which is a psychological , not a “reality” founded one relating to this company. People are panicked, they aren’t spending like they use to and as a result, advertisers are holding back investing into their future. In a recession, there are two ways to get through it stronger, one of which is investing in your future.
I haven’t lost until I sold
I have a lot of money in Canwest but if you look at their history, this is a very well performing and strong stock and just happen to get kicked in the head and balls at the same time… the result is pain but recovery will lead to a smarter, more agile and profitable company. This isn’t a bad thing. Consider this, two years ago, their stock was worth over 10$ and now it dropped as low as 40 cents… time to buy! If I had bought their stock at 10$, I would be freaking out right now, but I bought them when they were heavily undervalued and can go nowhere but UP in my opinion.
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