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Gold/Mining/Energy : Canadian REITS, Trusts & Dividend Stocks

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To: Peter W. Panchyshyn who wrote (3456)	6/14/2002 9:02:24 AM
From: Scott Mc	Read Replies (2) of 11633

These examples are comparing apples and oranges, here's an even more exaggerated one,,, ---- Now lets use some real past trading numbers. L buys 1000 units of PWI at $7 ($7000). He panics and sells out at $5.95 (mid december) at a 15% loss. Leaving him with $5950 from his original $7000. He decides to buy AY which at the time (mid-dec) is $9.70. He buys 613 units of AY ($5950). AY is now at $10.43 ($6398). Now P on the other hand he buys 1000 units of PWI at $7 ($7000). He doesn't panic when PWI falls to $5.95. He watches it for a while and buys 5,000,000 more units at $5.80 ($29,000,000). Bringing his total units to 5,001,000. PWI is now at $6.87. ($34356870). Now lets compare the two results. For L and his buying and switching 2 trusts his loss is 6398 - 7000 or -$602 or -8.6%. For P his buying and buying again the same 1 trust on weakness his gain is 34356870 - 34356870 or +$5349870 or +18.4%. P's gain is more than L's gain. ---------

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