Straight Stock Talk

My friend- I am responding to your request, so "you asked for it". I hope you can take straight talk, because that is the only way I know. It's not likely another expert would tell you what I am about to as they have something at stake, usually fees or ego. These comments are free and what is at stake is our friendship, which I value. Money is no more than a tool-- keep it sharp and well tended.

Summary - See chart link on each one

EVOL - I would cut my losses and sell it. See below on "cutting losses"
QLTI - Still in a sell zone. I would not buy this.
LWAY - This is the only one with *small* potential.
DWA - Still in a sell zone. I would not buy this.

Cutting Losses

You mentioned you were willing to lose 50% of your original capital, based on the idea that you could "average down" by buying more at lower prices. The fallacy to this thinking is two-fold:

(1) Your capital is tied up in a loser. Whether you have taken the loss or not, your original capital has diminished and, should you find a truly better stock, you'd have to liquidate at that loss. So a paper loss is as good, in my opinion, as a real loss.

(2) To make back the money you have lost, the stock has to double for a 50% loss. And should that remarkable "double bagger" happen, you've simply gotten even and now face the even more unlikely odds of a triple bag to make money. Like wise, even a 25% loss requires a stock to gain 50% to get even. Those type of gains are remarkable!! To expect them "just to get even" is wishful thinking that doesn't have a place in your investing plan.

Better to set a Stop Loss, which is a smaller amount of money (generally 8% below a level where there was prior support. A stop loss represents money you can "afford" to lose should that stock not perform as anticipated. This takes out the emotional element of carrying a loser and frees up your money, and mind, for a better candidate.

Best regards, Ana Maria

my friend's stocks