It's interesting to do some calculations estimatin
Post# of 43066
Posted On: 06/07/2014 3:36:23 PM
Re: PaperProphet #8947
It's interesting to do some calculations estimating how much money someone would have to invest in JBII to have an average PPS of $0.30, if they started buying at $6.00, and have been averaging down the entire time to $0.10, as they claim.
Various assumptions have to me made, but they all lead quite large sums of money getting tied up and lost. For example, suppose someone started off with 10,000 shares at $6.00, and then doubled the amount they bought each time the stock fell to half its previous price. If I did the arithmetic correctly:
10000 * $6.00 +
20000 * $3.00 +
40000 * $1.50 +
80000 * $0.75 +
160000 * $0.36 +
320000 * $0.18 +
640000 * $0.09
Total: 1,270,000 shares for a total cost of $412,800.00 to give an average of $0.325 per share.
The value of investment today is $127,000.00 for a loss in value of 69%
Alternatively, if one put that same money into an ETF that tracks the DOW, S&P, or NASDAQ, and then forgot about it, they could have earned a +60% return on the money during the exact same time, making that same investment worth $688,000.00. This approach would have provided a significant return without any angst ratcheting, sleepless nights, or any need to waste tens of thousands of hours posting thousands of message on smb's and "documenting" the secret code of the PROs.
Of course, if one considers how much time and money these same people have spent over the last 7-10 years repeating this exact same process at least a half dozen previous times, their loss in time, money, and quality of life is absolutely staggering.
Various assumptions have to me made, but they all lead quite large sums of money getting tied up and lost. For example, suppose someone started off with 10,000 shares at $6.00, and then doubled the amount they bought each time the stock fell to half its previous price. If I did the arithmetic correctly:
10000 * $6.00 +
20000 * $3.00 +
40000 * $1.50 +
80000 * $0.75 +
160000 * $0.36 +
320000 * $0.18 +
640000 * $0.09
Total: 1,270,000 shares for a total cost of $412,800.00 to give an average of $0.325 per share.
The value of investment today is $127,000.00 for a loss in value of 69%
Alternatively, if one put that same money into an ETF that tracks the DOW, S&P, or NASDAQ, and then forgot about it, they could have earned a +60% return on the money during the exact same time, making that same investment worth $688,000.00. This approach would have provided a significant return without any angst ratcheting, sleepless nights, or any need to waste tens of thousands of hours posting thousands of message on smb's and "documenting" the secret code of the PROs.
Of course, if one considers how much time and money these same people have spent over the last 7-10 years repeating this exact same process at least a half dozen previous times, their loss in time, money, and quality of life is absolutely staggering.
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