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Technology Stocks : LSI Corporation
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To: DavidG who wrote (9462)2/4/1998 9:30:00 PM
From: Jock Hutchinson  Read Replies (2) of 25814
 
I I loose fifty dollars or fifty percent on a one hundred dollar stock, I must realize a gain of one hundred percent just to break even. If I first make a fifty percent gain on a one hundred dollar stock and then loose fifty percent, I am now at seventy five dollars, and I need a gain of thirty three percent to break even. If I loose fifty percent on a one hundred dollar stock and then gain fifty percent back I will be at seventy-five dollars, and if I then loose at fifty percent of that and gain fifty percent back, I will basically be at fifty dollars. So it depends on whether you loose first or gain first as to whether a loss of fifty percent is twice as painful as a gain of fifty percent.
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