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From: "Juan Aristy" <idovb@ga.unc.edu>
Subject: Re: PARQ - Common stock ...
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Date: Wed, 22 Jan 1997 18:42:26 GMT
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Vlastimil Adamovsky <vlad@world2u.com> wrote in article
<E4C0K1.FCz@nonexistent.com>...
> jeffries@ic.net (Ronald E Jeffries) wrote:
> 
> >On Mon, 20 Jan 1997 07:54:57 GMT, areider@spacelab.net (Alan Reider)
> >wrote:
> 
> >>>I was thinking it looked like a buy, actually ...
> >>>
> >>
> >>Thats what I said at 2 1/2 :(
> >You can always average down ... I used my new Fidelity software to put
> >in an order yesterday.  What could I lose besides all my money?
> >Already got no mind ...
> 
> Yes, to average down. That's  what I am doing. Every month I am sending a
part
> of my salary to my broker. It really works. I am getting the PPD stocks
for
> cheaper and cheaper.....
> 
>     I hope soon I can take all my profit and fly to Hawaii. 
> 

This is called "dollar-cost averaging".  It's premise is that you invest
the same amount of money every month, so that when the price goes up,
you're acquiring fewer shares; when the price goes down, you get more
shares.  This results in a lower cost per share over the long run. 
However, most "experts" recommend against averaging down, since usually
stock prices discount future expectations.

If you decide to invest in PARQ, it's important to remember that you're
investing in a company, NOT it's stock.  Over time stock prices will tend
to reflect the underlying condition of their companies, they tend to
fluctuate towards their "intrinsic" value.

Juan
