SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : MRV Communications (MRVC) opinions?
MRVC 9.975-0.1%Aug 15 5:00 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Greg h2o who wrote (31955)5/15/2001 1:01:06 PM
From: Duffeck  Read Replies (2) of 42804
 
<<the downside risk is still 100%>>

Of course ultimately it is, as with ANY investment. I suppose I should add "..with MOST investments.." if you call selling short "investing" your potential risk there of course exceeds 100%.

You apparently are either being silly or joking. I was really only referring to the table from the NASDAQ site.

Stock Move of: 10% 25% 50%
BOND Upside: 3% 9% 18%
BOND Downside: 3% 6% 12

As you can see as the MRV stock price moves in either direction the bond moves in the same direction but with less magnitude. Thus it is a more conservative investment. ie less reward but also less risk. Interestingly to me, the risk reward ratio for the convertible is biased upward. That is, for a given percentage move in the stock price the potential reward is greater than the risk.

If you simply buy the stock the potential risk reward ratio is symmetrical; ie the same upward gain as downward loss for a given percentage change in the price of the stock.

I should add that I am a complete novice to bond investments and these observations were derived from simply looking at the numbers in the NASDAQ table.

For the reasons outlined the bonds look like a good investment. Am I missing something?

duff
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News