Quote from: Factory on September 08, 2012, 07:37:09 PM

Quote from: tmfp143 on September 08, 2012, 04:20:41 PM

Hello!
I manage the BLUECHIP mutual fund on GLBSE. The fund owns 40 shares of GIGAMINING. What is the plan to stem the drastic loss that the share price is taking? I recommend buying back shares. I pray that the plan is not to let the share price keep dropping until it reaches 0. Are there any updates on the ASIC upgrade?

If the price of my stock were dropping this fast, I would be more proactive. I would give my investors more frequent updates to build confidence. I am kind of stuck at the moment. I don't want to dump the shares at a loss, but the lack of information makes it hard to make a decision. I recommend addressing this issue, and doing something to restore investor confidence, if possible. I read the earlier comments about not being willing to discuss personal finances. In my opinion, the bottom line is this: if your company is on the verge of failing, there can be no items that are not up for discussion unless you want the enterprise to fail. If GIGAMINING truly is a venerable enterprise (which I thought it was, that's why I invested in it) then DO SOMETHING. SAY SOMETHING. Don't just sit there and let it drop to zero. Angry

A lot of the responses already cover most of your questions. When I read your post I sensed a level of panic, and I would like to add two things to be mindful of:

1. A sudden drop in share price is not definitively caused by disruptions to the business process. If a share price falls, the underlying backing will not just shrivel up and die. However, if an underlying backing hits trouble, it is quite likely that the share price will act accordingly.

2. With #1 said; If you subscribe to the ideas of value investing - think of a sudden drop in share price as an 'on sale' opportunity. If you bought a security @ .9 and it falls to .45 and the fundamentals are approximately the same, then the security should appear much more appealing. Many savvy investors will wait for such market occurrences and will gobble up as many cheap shares as they can.

Consider this quote: "Price is what you pay, value is what you get." -Warren Buffett

If you appreciate what I have said, I encourage you and anyone looking to gain an immense amount of knowledge about investing to acquire a copy of "Security Analysis." It was written by Ben Graham in 1934 and the book is still entirely applicable to the markets of today's modern society. The most recent version has a forward by Warren Buffett (one of Ben Grahams students) and commentary by some well respected minds within the economics community. I also recommend "The Intelligent Investor" which was written by Mr. Graham and covers much of the same material but in a less detailed and more easily understandable fashion. Even without any formal schooling in economics, the writings of Ben Graham can take someone a very long way.

*It should be noted, as gigavps said, that GIGAMINING is a bond for a fixed rate of hashing power. With a likely continual increase in difficulty, the ROI will likely decay accordingly. There is a long list of variables to consider before being able to determine what kind of value a share represents. Much of Graham's focus in his writings was on commons stocks and not bonds, as they are two different animals entirely.

Hi Factory,

Thank you for taking the time to reply. I enjoyed reading your post and will most definitely look into the books you recommended.

Best,
gigavps