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Politics : Gold and Silver Stocks and Related Commentary -- Ignore unavailable to you. Want to Upgrade?


To: koan who wrote (6771)2/17/2005 11:27:02 PM
From: Cogito Ergo Sum  Read Replies (1) | Respond to of 18308
 
Koan,

To use my NGX warrants as an example...
The common lost about 26%
The warrants lost only about 13% stock relative
The warrant lost 50% of their portfolio worth (for lack of a better term)... this is the one that effects the my portfolio... unfortunately... or worse my 12 year old's in trust account...

So we come back to the downside leverage being as bad as the upside potential is good.. ? Or have I been hit by an apple ? <ng>

regards
Kastel



To: koan who wrote (6771)2/17/2005 11:57:24 PM
From: IOTA  Read Replies (1) | Respond to of 18308
 
I realise that the warrant might not decline to the same extent because of the remaining time value. In my post however, I was using the figures than you had used. In the real world contributors to this thread are concerned with the percentage that they make or lose on an investment. Considerations of spacer-time warps are not really relevant to this endeavour. I think that you are throwing in a cosmological constant to justify your position, something that Einstein admitted was the greatest mistake of his career. I cannot believe that one can have increased leverage on the up side without having negative leverage on the downside, leaving aside some cushioning effect of any remaining time value. I fear that we will must agree to disagree on this matter.
All the best.
OB