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To: Jeffrey S. Mitchell who wrote (1847)8/26/1998 11:03:00 AM
From: The Street  Read Replies (1) | Respond to of 26163
 
<<Ask yourself this question, though: if you had a choice to be the consummate hypester or basher, would you rather hype a stock up from .50 to $2.00 and get a 300% return on your money, or bash it down from $2.00 to .50 and only make 75%? Think about it.<<

Same return Jeff.

Why not both?

10,000 * .50 = $5,000.

10,000 * 2 = $20,000 - 5,000 = 15,000 PROFIT.

Sell 10,000 at 2 = $20,000 - (Cover 10,000 at $.5 = 5,000) = $15,000 PROFIT.

So for $10,000 you get $30,000 back. 300% gain both ways.



To: Jeffrey S. Mitchell who wrote (1847)8/26/1998 11:20:00 AM
From: Dixie7777  Read Replies (1) | Respond to of 26163
 
Jeff,

I must be missing something or your math is a bit off.

To be sure, if a stock is bought at .50 and if then hyped and sold at $2, the resultant gain is 300%.

On the other hand, if as you say the stock is shorted, sold at $2, and is not finally purchased until it hits .50 this results in a $1.50 profit for the expenditure of .50. Once again a 300% profit. That is... my math.

Please show me where I've gone wrong and if I haven't, what was your point?

Rich