Forum Archive Index - September 2001

["G Stolwyk" <stolwyk@wave.co.nz>]

The Formula from my previous post. adjusted to read:

 

1 RBC = 1.76 FFS + 48 cents 

 

If the FFS price rises from 26 to 40 cents, then the return is 54%.

 

In that cae, RBC would rise from 94 cents to 118 cents, a return of 26%.

 

However, should the cash from a sale of FFS shares by Rubicon be spent in the buyback of RBC shares at a discount of say 20%, then the return will be much higher but will be somewhat later.

 

 An example of this was calculated in an interesting post:

 http://www.sharechat.co.nz/archives/2001/08/msg00208.shtml

 

Gerry