Raffles Education - From bad to worse?

I am extremely irritated to see that the once market darling has fallen deeper and deeper into the abysses.

The Company announced that it will report a loss for the year ending 30 Jun 2012. From the chart, the stock is likely to test its 52 week low. Let's just see how much value has Raffles Education "destroyed" from its peak. You can see that from the chart below. From a high of $5 to a low of $0.37 in the last 4 years! Perhaps it's time for a change? 

 

This stock would not have made it to my SRS portfolio today. Perhaps it's time to do a autumn cleaning for my SRS account and clear out this counter? haha.

It is probably too late to cut loss but this is one stock that can teach a few lessons:

Lesson 1 - I should have cut loss and moved on. The reason why I didn't was I told myself this is a 'long term investment' and that the invested capital isn't too big. Sometimes we can get complacent when the amount is small and we thought we can afford to 'lose' that amount. We just refused to accept the loss and move on.

Lesson 2 - Hope can kill.  This is one classic case where I keep hoping things might change for the better and keep holding on to the stock. From a loss of 20% -- increase to ---> 40%, then 60% then 80%.

Lesson 3 - Luckily I didn't average down. I never like to average down and perhaps this is the trait that is being 'passed on' from the trading mentality i have. My 'loss' would have increased significantly if i have averaged down. However, i do caveat that it is feasible to 'average down' but you can only do that if you have done adequate homework on the company and you are confident about its future prospects.