Forum Archive Index - August 2001

["Paul and Noriko" <pan@muh.biglobe.ne.jp>]

I don't think it usually happens that way in reality Snoopy....

Small cap stocks (usually penny ante in NZ anyway), jump more quickly (on
small volume) than large cap ... USUALLY ... thereby ensuring greater %
increase in shareholder value ...

It DOESN'T always happen this way - and of course the reverse may also
happen.

That's why traders like penny stocks .... and investors prefer larger cap
stocks (chicken or the egg?)

My observations entirely...


----- Original Message -----
From: <tennyson@caverock.net.nz>
To: <sharechat@sharechat.co.nz>
Sent: Thursday, 23 August 2001 08:52
Subject: Re: [sharechat] SKC split


> >
> >
> > No one has yet mentioned the issue of leverage. Consider a $10,000
> > position. @ $10.00 share = 1000 shares.   $3.00 =3,333 shares.  If
> > the share price increases 10 cents, which price scenario favours the
> > trader?
> >
> >
> Again there is no (theoretical) difference.   Any event that will
> cause 3,333 $3 shares to rise 10c will cause 1,000 $10 shares to rise
> 30c.   The Trader is no better or worse off. SNOOPY
>
>
> ---------------------------------
> Message sent by Snoopy
> e-mail  tennyson@caverock.net.nz
> on Pegasus Mail version 2.55
> ----------------------------------
> "Q: If you call a dog tail a leg, how many legs does a dog have?"
> "A: Four.  Calling a tail a leg doesn't make it a leg."
>
>
> --------------------------------------------------------------------------
--
> http://www.sharechat.co.nz/          New Zealand's home for market
investors
> --------------------------------------------------------------------------
--
> To remove yourself from this list, please use the form at
> http://www.sharechat.co.nz/forum.shtml.
>


----------------------------------------------------------------------------
http://www.sharechat.co.nz/          New Zealand's home for market investors
----------------------------------------------------------------------------
To remove yourself from this list, please use the form at
http://www.sharechat.co.nz/forum.shtml.