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Strategies & Market Trends : Group Therapy -- Ignore unavailable to you. Want to Upgrade?


To: Wolf 2 who wrote (800)3/10/2000 3:28:00 PM
From: Duane L. Olson  Read Replies (1) | Respond to of 4564
 
Wolf... Sharp eye on NERX..they did at least fling a few thoughts at the other NERX prospects (which I failed to see in the wee hours of the a.m.)..
As for the analytical technique....at least the probability model -- that part is a valid technique. At least roughly, the value of success times the probability of success, and the value in case of failure time the probability of failure do give you a "ball park" on a future value. These guys, however, use a 35% interest rate (implied) to do the Present Value (PV) analysis portion of the assessment.. I wouldn't normally use such a high implied rate of return.
I passed the comments just to indicate the "possible" valuation of my current speculation... Because that is very close to the model I used on LTXX about 18 months ago... It can be a useful tool if you have a long term view and a stongly speculative bent <GG>...
I bought a bunch of NERX between 26 3/8 and 26 5/8 today, but have an average price close to 30... It could turn out to be a bust, but I don't think so...we will see in a few months... (I hope) <G>
Tso