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Technology Stocks : LSI Corporation -- Ignore unavailable to you. Want to Upgrade?

To: DavidG who wrote (9462)	2/4/1998 9:12:00 PM
From: Howard S.	Read Replies (1) \| Respond to of 25814

<But, do I understand you to say that ...if I invest $100 in LSI and if I lost 50% or $50 it will be twice as harmful as a gain of 50% which is still $50...and... will be twice as harmful. Didn't I lose $50 either way. > True, but I think his point is that once you lose 50% and your $100 is now $50, it takes a 100% gain from that point to recover the $50 you lost. (The 100% gain required to get it back is twice the 50% loss.)

To: DavidG who wrote (9462)	2/4/1998 9:30:00 PM
From: Jock Hutchinson	Read Replies (2) \| Respond to of 25814

I I loose fifty dollars or fifty percent on a one hundred dollar stock, I must realize a gain of one hundred percent just to break even. If I first make a fifty percent gain on a one hundred dollar stock and then loose fifty percent, I am now at seventy five dollars, and I need a gain of thirty three percent to break even. If I loose fifty percent on a one hundred dollar stock and then gain fifty percent back I will be at seventy-five dollars, and if I then loose at fifty percent of that and gain fifty percent back, I will basically be at fifty dollars. So it depends on whether you loose first or gain first as to whether a loss of fifty percent is twice as painful as a gain of fifty percent.