Aluf Holdings Inc (AHIX)

[eddy2]

Fractional shares " every one pays the same in the end " it works on two principals capital invested as well as number of shares bought but what one has to look past is growth of revenue to see the up side potential but that can be sometimes difficult to calculate.


How much has investors invested " capital surplus "


How much debt


How much reinvested " common shares " used for reinvestment.



With this you have to look at retained earnings and working backward with looking at the retained earnings at a 10% over a one year period how much would that relate in dollars. So ten times yearly earnings is a good start.


Take that figure minus the debt of reinvested capital as well as debt divided by the capital surplus and you have your ROI " return on investment ".


That is what your capital is worth should after a year regardless. Now if you bought five years ago your going to be worth more after that ten year waiting period should every thing hold up to those figures.Now should you have bought just before the shares are removed from trading well you will have five years before it trades again but unless you buy millions and millions of shares to get your capital allocation figure up for the reinvestment figure then with the fractional shares in effect you won't do as well.



Another thing that the late investor has over the early investor is the amount of depreciation were if it is above the norm of what is allocated for the fixed assets then one can assume it was do to loss of revenue to do a huge sell off in merchandise or service supplied were your cost has now outstripped your profit margins.