1. To sell or keep, there will be regrets either way. If you keep, you might miss the opportunity to invest in better investments. If you sell in this bear you might miss the market recovery.

2. The nature of stocks investment is of variable return. Stocks go up and down depending on company perfomance and general market conditions. The best strategy is therefore to pick solid companies under favorable market conditions and remain invested long enough to make a return.

3. Back to your dilemma. Why did you invest in these two stocks? What has changed? Are the changes likely to reverse? Your answers to this questions will help you to make your decision.

4. Lastly, pray on the lord to deliver us from this bear.

Averaging down on a questionable stock Vs buying stable counters with better returns. If the objective is to recoup your losses, which of these paths is more likely to help you achieve your goal?

heheheheh...i feel you my guy. In other jurisdictions utilities are solid companies to invest in.Indeed even hapa Kenya, these two consist of NSE20 index which implies that they are one of the bluest of the so called bluechips.

However, hapa Kenya the NSE casino is highly rigged and corruption is rife. If you are mutu ya mashinani like me, you definitely know that even a simple task like reading post-paid meters by Kenya power staff is a problem. They are lazy. Kenya power can only save itself by replacing all postpaid meters with prepaid ones.(but i digress).

You have two options:

1. Do nothing. Don't sell and don't buy. Leave them there and write them off as bad investments and move-on to sure bet investments like say opening a duka in your neighbourhood or buying a tuk-tuk/nduthi or buying land.

2. Buy more. Note i'm deliberately avoiding the term averaging-down. Buy more of these two. They are monopolies and require heavy capital to build therefore they will remain monopolies for very many years to come. Indeed it is a no brainer that demand for electricity will continue to grow. Buy more. If possible increase your holdings in Kenya power and Kengen to 1 million shares each. The mantra in most casinos is go hard or go home and the NSE casino is no exception.If it is getting burnt then you better burn beyond recognition. Be like Donald Trump and make decisions quickly and stick to them no matter the doubts(kesi baadaye).

@PIEDPIPER, "What do we say to the God of Death?" The answer, as Arya knows all too well, is, "Not today."

Both counters are primed for a recovery with KenGEN more likely. Hang in there and if possible load up on KenGEN for quicker recovery.

Then next time, have a top/bottom threshold.

I learnt that lesson of averaging down the hard way with KQ and in business. If you find yourself in a bad investment with dim future prospects, BAIL OUT. Dust yourself, swallow your pride and look for better investments. You will save yourself a lot of time and money in future.

Indeed. It's a science

Fortunately

Your math is right. There must be high hope of a price recovery. Otherwise no need to average down

In shilling terms, KES 10 and KES 20 per share are totally different propositions especially when holding large amount of stock. Averaging down can be done but with high caution

No need for caution when averaging down a fundamentally good stock.