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Politics : Ask Michael Burke

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To: Knighty Tin who wrote (94436)2/10/2002 8:39:32 PM
From: Freedom Fighter  Read Replies (2) of 132070
 
KT,

Thanks.

I guess the bottom line is that there is an added layer of risk here.

Assume I own a very profitable food company that I believe is worth "x".

Now assume it is selling in the market for 1/2 "x" due to what I believe are short term operating difficulties.

Those difficuties will not threaten the company and I don't mind waiting around until everything is fine again and the valuation moves back up. (assuming I am right and the market is wrong).

However, if a company is not fully funded and I am totally right about its prospects, if the market disagrees with me and refuses to fund it at an appropriate value at that time, I could get wiped out or it could even die.

Is that the gist of it?

Wayne
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