Stock price fell by 50%, is it cheap?
Since I first started dealing with stocks, the investors around me have been buying stocks with the concept that the lower the stock price falls, the cheaper it gets, saying that a big drop in stock price is actually a big promotion! It's time to sweep goods...
But this does not apply to every stock, and it's even a risky move for most people.
Because the percentage decrease and increase are not directly proportional, a 50% decrease requires a 100% increase to break even. Buying stocks at RM1 that drop to RM 0.5 is only a 50% decrease, but to rise from RM 0.5 to RM 1 requires a 100% increase. If you buy into the wrong stock that keeps dropping in price and continue to purchase, your wealth will keep shrinking.
Take a look at today's $Sea (SE.US)$ The parent company of Shopee, familiar to Malaysians, saw a 28% decline in stock price on performance day today, dropping 89% from its peak. This also means that to reach the highest point from this price level, it would require an increase of about 900%.
Many investors consider a 50% drop as cheap, with a potential further decline of 50%, and a possibility of another 100% decrease — attaching my chart slides as reference, dropping 50% from point A to point B, another 50% from point B to point C, and a 56% drop from point C to point D.
Stock prices can continue to drop 100% from that point even after an 80% decline, not just remaining at 20%...
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$Sea (SE.US)$ should had buy it when it falls to 89

$Futu Holdings Ltd (FUTU.US)$ 90% of the financial reports have dropped... It seems that there haven't been many significant increases, especially in the case of Futu.

$Sea (SE.US)$ Expected trash stocks since I short at 351.

$Grab Holdings (GRAB.US)$  You folks take it easy, me entry late at end of trading day at 3+ dollars.
Will holding grab without worries since it spare money playing for my side 😜.

$Grab Holdings (GRAB.US)$ Have fun less than 4 dollar now. 6000 employees grab hired.
The more curse n fear in the comments, that the best times for entry at the end of trading day.

$Grab Holdings (GRAB.US)$ there are lot stock price under 1 dollar, wait and chance

$BABA-W (09988.HK)$ what a deal…Charlie Munger and his team of professional analysts determined BABA was cheap at 150…now u can get it at 100!! going to margin debt and go all in here!