Amit Chokshi

Comment Stream » PARL

Comment Stream
Filter comments by:
Highest rated Latest comments
Or filter by symbol:
  • Parlux Fragrances Roller Coaster Making Me Nauseous
    All excellent comments. Doing due diligence not only on the company but also on management is critical before initiating an investment. For special situations like take privates it's also important to consider the viability of a proposed deal in terms of financing. The CEO wanted to take the co private at $29 per share when I believe it was trading at $18 or so? Lenders, even in a strong credit market, would probably have said they could lend to support the deal but that the CEO would have to put in a big chunk of equity to support such a high price.

    I would sell PARL immediately if I were you, I have no position in the stock but that's just $x grand typing up your capital. Understanding the power of compounding is the key aspect, you lose 1/3 of your investment and you'll need a bit over 50% to make up for it so if you're down 60+%, just dump it. It's mentally draining to just have that bagel in your account too, especially if you have no conviction in the position or didn't buy it as a core investment. It doesn't sound like you have any conviction in the company and you bought it as a special situation. I'd suggest putting in a stop loss on situations like this going forward too if you don't really want to own the company.

    This only comes from my own experience on riding down big losers, you're not only wasting time trying to recover your cost basis but you're going against inflation too. In today's market the hurdle is 5% you can get in an online bank account so what's the point in hanging around waiting for PARL to quadruple, that stuff rarely happens to companies with problems like PARL has because the accounting issues it currently faces always take longer to resolve than initiallty anticipated and worse news basically continues to follow basically bleeding your long positions dry.
    Aug 25 13:13 pm |Rating: 0 0 |Link to Comment |View article

Amit Chokshi's Comments Stream Stats

  • 88 Comments, 0 , 1
  • Total Comment Stream rating - = -1