Victor ... About Investment Losses
>>>I never raised the Alta Vista issue in my post - I referred to an article which dealt with the issue of companies using their capital to create investment porfolios and how Wall Street deals with this.<<<
True, you didn't raise the Alta Vista issue in your post, but you stated:
>>>A lot was said on this board about Rosen's brilliant investment acumen and how it was driving the value of COMPAQ. I have seen no posts about the recent heavy losses in the value of the portfolio.<<<
It is clear that 'Rosen's brilliant investment acumen' ties directly into AV and CMGI. CPQ investment portfolio value is affected significantly by CMGI share price because CMGI probably represents about 75% of the portfolio value. Maybe you didn't know this and I should have explained it. Again, it seems to me you didn't understand my post at all. Let me go through it one more time. CPQ exchanged 83% of AV for CMGI shares at $39 when the deal was closed, today CMGI trades for $62. On paper, they gained 59% whether the stock price was $150 or $10 three month ago. The article you posted is talking about the reduction of the value of the portfolio from the high which really doesn't make much sense since valuation should be based on the initial value.
Now, talking about investment losses, if one buys a stock at $40 and sells at $20, this is an investment loss of $20 per share. Hopefully, by now you got my drift.
About my mood
>>>I notice your intemperance rises every time CPQ's share price declines in value. I would have thought you had got used to it by now.<<<
I didn't know that you can also assess tempers in addition to your investment capabilities. If you are this good, you should plot a graph of my temper vs the stock price and use it for your trades of CPQ stock. |
