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greg s

10/08/05 12:21 PM

#97125 RE: Vader #97124

re: downside risk is less than .90 per share

I will agree with you with one caveat: That one's entire WAVX portfolio has a basis of less than .90 per share. Of course, if one owned, say, 10,000 shares, one would face a total loss of $9,000. (assuming their portfolio has a basis of less than .90 per share).

Of course, one's mileage may vary, depending on basis and total share ownership.
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cpa

10/08/05 12:50 PM

#97127 RE: Vader #97124

Vader,

Downside risk cannot be stated in such simple terms.

Risk is a percentage of the value of the investment.

Downside risk is 100% loss of the current value of your investment. End of story.

Otherwise you could say General Electric has far more risk than Wave due to the higher share price. THAT MAKES NO SENSE!

CPA