montogomery's analysis, page-25

You raise some very good points cat lady. I think this shows that it is very important to use a range of methodologies and processes and not rely on one source or system. For all of those value investors that claim they are "excited" about the price drops in MCE, surely they would have been more excited if the value of their holding hadn't dropped by 50% (a drop which has now been backed up by the release of the financial results). It will now take 100% to get back to the same level. I used a stop loss for MCE even though this was against value principles and I'm glad I did as I kept some profits this way. In the end you have to say to yourself "will I be able to cope if the value of this stock falls to a certain level?" and set an appropriate exit from there. I will still follow value investing to some degree and try to invest in good quality businesses, but I will also look at technicals and try to combine both methods