Ouch!

Slammed! (LTBG)

. In November, I made a few bucks from Lightbridge, so I jumped back in this week when the chart looked pretty good. The very next day, LTBG got slammed.

LTBG stock chart

I've stopped paying attention to what happens in the first hour of trading; it's just too volatile and often includes trades that end up being at the extremes of the day's range. So by the time I tuned in, the damage had been done, and LTBG was down over 15%. At that point, there was little to do but grit my teeth and bear it.

Naturally, I went looking for news, and it turned out that the company had made an innocuous announcement that they were going to keep a part of their business for which they were evaluating the strategy. Obviously, "the market" thought that was the wrong decision!

I'm always amazed that the analysts and other kibbitzers can be so certain they know better than the people who run a business and have full access to all the data. It's armchair quarterbacking to the nth degree. It would be funny if it didn't have some unpredictable and often severe consequences.

LTBG presents one of those dilemmas: After stocks get slammed, they sometimes rebound in the following days (and sometimes do not, of course). Do you hang around to see if that happens, and for how long? Or, do you cut and run, avoiding possible greater losses but also losing out on any possible recovery?

Today LTBG traded a bit lower than yesterday's range, but has recovered to the $8 level — about where it was when the uptrend started at the beginning of November.

It's the sort of situation that gives you a greater appreciation for what mutual fund managers must go through only multiplied many times over.