For anyone who doesn't understand, consider what can happen to your fingers if you try to grab a carving knife as it drops off the kitchen table. In a word: ouch!
It's the same with an investment which is falling sharply with the lower price appearing to make it cheap. Surely, thinks a bargain hunter, it can't go any lower.
Of course it can and so often does, because the root cause of the fall is often not understood in the early stages of a decline, sucking in new investors who discover too late that they have made a mistake. In a word: ouch!
The problem with Koolyanobbing, a mine developed in the 1950s by BHP to feed a blast furnace at Kwinana south of Perth, is that it has always been a marginal proposition, except when iron ore prices are booming, or when ...