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Gold/Mining/Energy : Nuinsco Resources (NWI)

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To: Rocket Red who wrote (386)1/25/1999 9:52:00 PM
From: BLZBub  Read Replies (1) of 5821
 
Just for fun...

That analyst guy said that NWI would:

1) go to $5 if the next hole hits;
2) go to $1 if the next hole misses;

Charters said that there's a 50% chance that the next 3-4 holes would hit, lets be conservative and say:

3) 50% chance the next hole will hit

If you were to buy 1000 shares now at $2.30 ($2300), you have:

a) a 50% chance to lose $1300 ([$2.30 - $1]x1000)
b) a 50% chance to win $2700 ([$5 - $2.30]x1000)

Therefore your expected net payout is: $2700 - $1300 = $1400.

Gentlemen, place your bets...

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