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 : Ascend Communications (ASND)
ASND 204.41-1.0%Nov 14 9:30 AM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: michael modeme who wrote (56909)11/7/1998 11:04:00 AM
From: Chuzzlewit  Read Replies (2) of 61433
 
Michael, your analysis is skewed because you are assuming that you must remain in the stock for a fixed period of time. For example, if LU were to buy ASND on Monday for $69 you could sell LU shares and immediately reinvest the cash in other growth opportunities provided that they yielded at least 26.5% (which is the growth required for the remaining five years to equal your target figure). There are plenty of companies that meet that requirement.

Other than tax considerations, I can think of no reason to hold a stock for a fixed period of time.

Anytime you can receive greater than market value for the stock the difference represents a real premium.

TTFN,
CTC
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext