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Aef

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Alias Born 08/01/2013

Aef

Re: lockstockandbarrels post# 850

Sunday, 01/26/2014 3:48:53 PM

Sunday, January 26, 2014 3:48:53 PM

Post# of 6624
No doubt, no one on this board understands splits, only you.

Try it this way. You and 3 friends buy a pie that is cut in 4 pieces for $8. You have 1 quarter of the pie that you got for your $2. Then you all decide to cut the pie into 16 pieces. You still have a quarter of the pie but now its cut into 4 slices instead of 1. Each of your slices is now worth $.50. Some other friends come along and see that now slices are "cheaper" and they want to get a piece of the pie, but in truth it isn't a better deal because the slices are 1/4 the size they used to be. But since a lot of people are influenced by the psychological perception that pie is now cheaper even though it isn't really, there are more buyers interested, and you can now sell your pie at a 25% premium to what you bought it at.

You are telling us that it would have made sense to sell some of our pie back when it was worth "more", but now that it is "cheap" you can't understand selling it. In fact, my portion of the pie is no longer worth $2.00 but now $2.50 and it's a very reasonable time to consider selling a slice or two, much better than it was a week ago. You also said you expect this pie to quadruple in value quickly as it did once before (which I quite enjoyed). That is possible, but no more possible than it was when it was cut into less pieces, except for the psychological effect described above. That would make a very very expensive Arcam pie.

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