InvestorsHub Logo

utvolsfan13

03/07/10 4:14 PM

#161592 RE: General Grievous #161589

Risk vs. Reward. Best possible case for WAHUQ is to get 1.36X your investment if it gets full value of $34 or 2X your investment if it gets $50. That is maximum. With WAMPQ, you would get 12.195X your investment if made full. With WAMKQ, 10.917X your investment if made full. WAMUQ just has to get over $4.72 to beat all of those. Risk vs. Reward.

SlyOne

03/07/10 4:57 PM

#161617 RE: General Grievous #161589

First, There are many reason why people prefer different stocks.

The H, P, K, Q have different payoff's and risk's, if successful or failure. You need to figure that out. Its in IBOX.
I wont go thru all the details of very WMI security.

WAHUQ have a straight line payoff to them, which I also wont details for you. Its in the IBOX, do the math. You also need to learn how corporate balances sheets are structured. Also, I think you need to think through what will happen after BK.

Read the WAHUQ description, It has lowest perceived risk of the four mentioned. Notice the word "perceived". No one knows the real risk thats in these securities thats why they trade at pennies. Nor, does anyone know the real rewards thats in these securites thats why they trade at pennies. Get it! No one knows!

Most of the focus is on WAMUQ, because this board is home for people doing, exchanging DD. With the DD if right, the Q will recover the most in value. notice the word recover! Q's will not make all-time highs for awhile.