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Strategies & Market Trends : A.I.M Users Group Bulletin Board

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To: JZGalt who wrote (9545)12/13/1999 12:00:00 PM
From: Jack Jagernauth  Read Replies (1) of 18928
 
Hi Dave, thanks for your interesting posts.

"fair value" 25.5 * $1.52 = $38.76
"cheap" = $27.86


Just to clarify so that I understand a little better:

"cheap" = "fair value" divided by 1.40
"expensive" = "fair value" times 1.40

Is this correct?

Currently trading with a price near $54, NITE would fall into my overvalued area and be liable for pruning when and if the stock stops rising.

When you say pruning, what do you mean? Do you bail out completely, or do you reduce exposure, and if so, by how much?

Thanks, Jack
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