To: tonyt who wrote (14460 ) 2/9/1998 12:59:00 AM From: Flagrante Delictu Read Replies (1) | Respond to
tonyt, >> If I'm doing a valuation based on what I can get for an asset, why would I base my valuation on what it would cost to buy, rather than what I were to get if I were to sell?>> The valuation was being done on where the stock & warrants closed today compared to their initial valuation which was also based on closing prices. This, of course, highlights the sneakiness of your thesis. Did you not price the starting position in the warrant on its close, which was .375 cents above its' closing bid of $5.625? If you want to do a comparison, is there any reason you should not present it on an equivalent basis? When one thinks of it, you would have to price these assets on the basis of tomorrow's opening bid or asked {because the market is now already closed} to attempt to ascertain where you could buy or sell, and as mentioned before by me ,since live bids & askeds are dynamic & appear on quote screens after the fact & may have already changed by the time your order reaches the order room of your brokerage where it is then {usually} phoned in to the market maker that gives your brokerage firm the biggest rebate for execution. Don't pretend you don't get a different {usually worse} price than you expected when you give a market order to your brokerage firm . Finally, have you not noticed that they all too frequently cannot get you an execution based the bid or asked displayed on the screen in Nasdaq stocks? Have you never been told that the stock or warrant" traded ahead"? Do you not recall that your brokerage claims they cannot be held to an execution in less than 6 minutes after they have received your order? Don't you remember that 6 minutes is an eternity in the market, particularly after the open? That's why the prices reported in newspapers & CNBC & other television & radio outlets are always" last" prices. In fact the Internal Revenue Service uses closing prices to determine the value of estate and other assets. Mutual funds are also priced on closing prices of their porfolio assets. Despite this, you want to price on your own basis, which{ not coincidentally} biases the analysis in your favor. And you think the threadsters don't notice this? Good luck. Bernie.
