News Focus
News Focus
icon url

RedStick

04/05/09 1:50 PM

#110639 RE: invrlrn #110625

If the stock is bought out for .50 a share, does that mean the price will automatically rise to .50 a share?
icon url

BeanTrader

04/05/09 2:02 PM

#110641 RE: invrlrn #110625

OK, let's discuss that idea.

Pretend you are very wealthy for a moment. Your net worth is $25 billion. You are set for life. But you want to make the world a better place and it wouldn't bother you if you could make a lot of money while doing it. Pretend you had a chance to buy something with $4 billion of your money that would earn $500 million per year in profits in just a few short years. That would be 12.5% per year earnings on that investment.

Would you do it if you thought the investment was likely to achieve that rate of return?