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To: d:oug who wrote (9192)10/15/1999 2:24:00 AM
From: EL KABONG!!!  Read Replies (1) | Respond to of 32883
 
Doug,

Thanks for the tip, but I don't do BB stocks. <g>

And you've also given me an excellent opportunity to rail against one of the many myths regarding BB stocks (or any low priced stock for that matter).

But where else can you but thousands of shares for the price of 1 IBM.

Never think of any stock in terms of its' actual price. Owning lots of shares of something means absolutely nothing. What matters most is the percentage increase in the price of the stock (plus any dividends) or what's called the return on investment.

Let's say IBM is selling at $100 a share and Hypothetical Small Price is selling at $1 a share. If you have $10,000 to invest, you can buy 100 shares of IBM or 10,000 shares of HSP. You have 100 times as many shares if you bought the HSP rather than the IBM. But the value of each investment is still the same at $10,000.

Which stock is more likely to bring, say a 10% return? Or a 20% return? If you ignore time (and the value of money over time), which stock is more likely to bring a 100% return? Everything must be measured in percentages, not raw numbers.

And now we return you to your regular programming... <g>

KJC