Ken; said:
I suspect 24 cents will be tomorrow if it breaks below 24 cents SRZ begins to look ugly.....Would you cut losses or hold?
I agree, breaking 24 will be untidy and much depends on the overall market.
Personally, I might sell half of what I have if this occurs to protect some capital, in case it completely fails after that. While I think this is a correction, and the flow on effect from sub prime will not be as bad as the bears believe (the amount of sub prime delinquencies are a drop in the US morgage bucket from what I understand - and the vast majority of the US is still going great, as is the rest of the world), I will be quick to completely cash in if there's a serious breakdowns in support, which 24 and then 20 is for this.
As a general comment on the potential fallout from the US, and particularly concerns over credit, what could occur in Australia as a potential flow on, is that funding could dry up. At the moment, if an explorer needs cash, they go and do a book build down the Freeo Pub. In the future that may be more difficult and species may suffer, or even collapse worst case. So, you need to be protected from this. Also, even the best FA is based on available information that the company provides. We've seen many cases of creative accounting, poor hedging, and poor understanding of geology for example, that has resulted in companies collapse miserably, or worst case be wound up. Not saying that this is the case here at all, but something to remember when holding something through what seems to be great fundamentals, or even through emotion, or stubbourness. Food for thought.
But as I said, I think correction. But I'm no economist, I used to run Army hospitals!