Andy So

Will the Market Keep Falling? I Hope So

Leon assuming that $300 was the high price of your stock, I wouldn't have started to buy until the stock hit a 70% discount i.e. $90.

For a blue-chip stock the odds of dropping to 70% are low, not to mention 80% or even 90% off of previous highs. If you play the short game you are betting on further downside after the stock has already dropped 70% or greater. No one knows where the bottom is, so it makes no sense to try and short an investment that you believe is a quality one at $300 or at $90. None of your examples above are quality examples. ARBA, CMGI, NT and YHOO built business models from networks and services that were relatively new and untested.

A better example would be INTC or MSFT in the tech sector. Picking up either of these at 70% or greater discounts would be a solid buy.