Cutting losses or staying on for the ride

[didds]

Some of you may have seena recent post of mine regarding GKP shareholdings. In a nutshell I origainlly invested 4K, but aftera reconsildation my original 2.2K-ish shares are reduced to 22, albeit the price is back to whre I started. In essence my 4K is now worth £40. I reality that £40 is "worthless".

Hey ho, doo-dah happens and move aon.

the only "query" or thought I now have is what is worthwhile with these paltry shares now? My gut feel is to leave them there... I'm never going to get my stake back so its all lost in effect (see above wrt hey ho ). It may do well enough in the future to mabe turn that £40 into £100 - maybe. With the right buy out maybe even double that (woooo!). But its a long wait on £40.

The alternative is to sell up... I use Halifax share dealing service so guess that will cost my £12.50, so in fact I'll end up with maybe £27 or so quid - which makes cashing up even less attractive. Then again £27 quid would buy a pleasant lunch for me and Mrs Didds.


What's everybody's else's general thoughts if/when you are ever in this situation?

didds

[swill453]

If you don't sell, the rump of the investment will be a constant reminder of your loss every time you look at your portfolio.

Personally, I have one exactly like that in mine. I keep it as a reminder not to be tempted by the prospect of a quick buck in future

Your mileage may vary (I've no idea who GKP are, and why one might have invested).

Scott.

[AleisterCrowley]

Does HSDL cheap dealing day (£3-95) apply to sales? I've only ever bought.

[k333]

This happened to me with QXL Ricardo. My original £1k investment was worth £83 three years later, and a while after (around three years more I think) they got taken over yielding £7k!!

- K

[Slarti]

I've had this sort of thing happen with 2 investments, one has dropped from £2000 cost to £1 value, the other dropped from £2000 to about £50 and then got taken over giving me about £500.

The £1 is still sitting there waiting to be taken over or written off.

Slarti

[BobbyD]

If these are in a taxable account then don't forget to consider the value of the capital loss, and spend it accordingly.