Lost 10k in a Single Stock

[gopi]

One of the stock (REDE) i own is down more than 30% from friday ...$10k in RED :(

Anybody own this sucker?

[troels nybo nielsen]

I hope that when you bought that stock you did not make yourself dependent on its worth?

[gopi]

Not its not a big part , but still hurts :(

[Hunter]

gopi that stinks...pm me next time before you buy so I can have a look at the technicals at least...REDE was showing recent weakness when it broke down Jan 7th from a daily triangle then confirmed it's weakness the very next day when it broke thru the daily 20 sma...not saying this to confuse you further, just to highlight the fact that you can save yourself a lot of pain by learning to read charts and paying a lot of attention to risk control.

[chadmg]

looks like there's lots of bad news items for this on friday.

[gopi]

>> there's lots of bad news items for this on friday

Its the same news Amazon faced during its early days - supplychain/fulfilment issues :)

[snowman]

not to diminish the significance of your loss.

I once received some wise advice about stocks and casinos:

"play only if you can afford to lose."

good luck in the future!

[jimbeetle]

Back in the fall some folks here were wondering how long it would take the first Internet IPO in some time to shoot itself in the foot. Three months!

There was a pretty good article about Red Envelope in today's New York Times (www.nytimes.com - I'm not going to link to the article because it's registration only and article goes behind closed doors after 7 days).

The Times' article talks about how REDE was a victim of its own popularity, orders were pouring in, no inventory to ship. Basic problem appears to be that company designs it's own goods, so can't place follow-up orders with commodity-type suppliers when demand runs high. Plus, personalization service was overwhelmed, leading to "not by Christmas" delivery.

What should have been it's best month and quarter ever -- total Internet holiday sales up 35% over 2002 -- went down the drain.

On the plus or almost plus side, the company will be close to profitable for the year, ranging from $400K loss to $200K profit. That's still kind of unusual in the Internet world.

[gopi]

Jimbeetle , ya i read that article .Actually i bought it long after the IPO from the recommendation by a popular smallcap newsletter i trust .But i still believe that the problems are not cronic and this stock has a good chance to rebound - atleast i am not dumping it so its still a paper loss :)

Snowman , no i will never invest more that i can afford to loose ...$10k is not going to hurt much but its amazing i loosed that in a single day in a single stock :)