I am a first time poster but have been a stock player for close to 30 years.So if may put forward a slice of personal philosophy,stocks have no memory. That is to say what you paid for something has no bearing on what is going to happen from here on. So forget that PSN was $13 just 2 weeks ago. Dont buy it based on what it was.
Look at it now at the current $4 price. Does the upside potential outweigh the downside risks? Only then should you allocate more of your hard earned money. I for one have been smoked on PSN, but I have not made a bad situation worse by adding more. I do have a few contacts that lead me to believe that this stock does indeed have a legitamite shot. But their are plenty of worries(lack of management credibility,questionable accounts receivables) to name a few.
Over the last decade or so, I have seen plenty of great stocks that got ravaged.Teck,Telus,Transforce etc. They were all pummeled over 80%.But man were they good buys.In the same breath, how many people averaged down on Yellow Pages,Nortel,RIM etc.?
So forget what PSN was,that was then. Do your homework and make your decisions on the here and now.Imagine if you can that you have nothing in PSN and look at it with fresh eyes.
I for one will probably add to what I own but not untiul the emotion and fear subside.When the volume goes back more to normal and the day traders vacate the premises. Then I will re-evaluate and decide my course of action.
One last note, I hope they chop the dividend or remove it all together.I would rather they conserve cash to ride through this storm. When earnings pick up(if they pick up) then they can always reinstate them.Anybody who is buying PSN today simply for dividends is an idiot in search of a village.Survival and going forward are the important keys to focus on.
Sorry for the long winded post