Greetings my fellow stockaholics! I have been turning in my bed at night watching ZOES slowly go bankrupt but there is a small voice inside that says I should keep it. I however try to not follow feelings but rather data. It appears that we have shattered the glass floor falling steeply to $9.00 and change. What are your thoughts? Is it possible that ZOES failed to meet projects not because other restaurants such as Chipotle and Panera are looking to enter their market or was it because of their enthusiasm to reach untapped mediterranean food loving markets? I am looking forward to a future discussion and your responses to the poll!
Leading into this post, I'll say I have done 0 research, so I'm just looking at the chart for the first time and giving my opinion. If I was currently bagholding, I would hold a little longer unless it loses support where it dropped to on 5/25 ($8.65). It looks like it tried to drop again after a small upswing shortly after the huge drop, but support held. I would not be averaging my price down right now, but would hold what I have to see what happens in the near future. If it loses support though, I'd be out and looking for greener pastures. I also wouldn't fault you for getting out now. If I was not invested, I would not invest right now. Far too risky. There's obviously upside to return to where it was before the earnings date, but who knows where the floor is. I'd be looking for a better spot. In general, it's never good to limit yourself to one stock. There's 1000's to choose from, so why wait for your trade to return back to wherever you invested when you're no longer confident in it? I think a lot of investors/traders get stuck on the idea that every trade has to be a win, so they'll wait and wait and wait just to see their investment go green again just to make 1% on it over 2 years. Meanwhile, they could have just sold while they were down, and re-invested that money into much better spots and made significantly more. It's a very bad practice to think every trade has to be a win. You should be thinking where can I put my money right now to make the most money. If that answer is not bagholding whatever position you're already in, then you should move on. Now, if you are bagholding a position that drops, but you still like the technicals, fundamentals, or both, then you can re-evaluate and decide if it's still a good investment. If you're simply bagholding waiting for it to go green and have no reason for doing so, then it's typically time to move on.
