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Microcap & Penny Stocks : Zulu-tek, Inc. (ZULU)

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To: PartyTime who wrote (14715)10/12/1998 12:31:00 PM
From: Jon Tara  Read Replies (1) of 18444
 
There isn't any "18 percent gap", though, PT. You're making that up.

ZULU *lost* 18 percent more than the others on the way down from it's old high.

The others have to increase in value apx 5X to get back to their old highs.

ZULU has to increase in value apx 30X to get back to it's old high.

ZULU has to increase in value apx 6X to "close the gap" between it and TFSM/DCLK.

That looks to me like a 600% gap...

PT, I'd suggest you read an elementary book on investing. Try "How to Buy Stocks" by Engel and Boyd. Carefully read the discussion on percent down vs percent up, and the logical mistake that many novice investors make. For some reason, it's very hard for people to grasp this, maybe because we are trained to think in terms of "points" (counting fingers and toes? :) ) rather than percentages.

There is an inverse relationship between losses and gains required to retrace the loss. i.e. 1/3 loss requires 1/2 gain. The insideousness of this doesn't really smack you in the face until the loss gets to be more than 50% - e.g. 75% loss requires 300% gain, etc.

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