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#21
03-04-2007, 02:32 PM
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Re: Would You Buy This Stock?
depends on the market capitalization...the smaller the market cap, the more likely he has something insightful to say about it...
if the stock was IBM or exxon, practically meaningless... if it was a $500M market cap biotech, i would look at it very seriously. 
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#22
03-04-2007, 04:18 PM
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Re: Would You Buy This Stock?
[ QUOTE ]
depends on the market capitalization...the smaller the market cap, the more likely he has something insightful to say about it... if the stock was IBM or exxon, practically meaningless... if it was a $500M market cap biotech, i would look at it very seriously. [/ QUOTE ] Correct answer. It happened four years ago and it tripled. It is important to understand that this wasn't really a question about the stock market.
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#23
03-04-2007, 04:26 PM
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Re: Would You Buy This Stock?
[ QUOTE ]
[ QUOTE ] depends on the market capitalization...the smaller the market cap, the more likely he has something insightful to say about it... if the stock was IBM or exxon, practically meaningless... if it was a $500M market cap biotech, i would look at it very seriously. [/ QUOTE ] Correct answer. It happened four years ago and it tripled. It is important to understand that this wasn't really a question about the stock market. [/ QUOTE ]did you buy it when he recommended it to you?
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#25
03-04-2007, 05:08 PM
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Re: Would You Buy This Stock?
[ QUOTE ]
[ QUOTE ] depends on the market capitalization...the smaller the market cap, the more likely he has something insightful to say about it... if the stock was IBM or exxon, practically meaningless... if it was a $500M market cap biotech, i would look at it very seriously. [/ QUOTE ] Correct answer. It happened four years ago and it tripled. It is important to understand that this wasn't really a question about the stock market. [/ QUOTE ] Right... so if someone told you beforehand to get out of Enron because they had insight about the fraud involved in the company, that is basically meaningless.
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#27
03-04-2007, 05:21 PM
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Re: Would You Buy This Stock?
[ QUOTE ]
[ QUOTE ] [ QUOTE ] depends on the market capitalization...the smaller the market cap, the more likely he has something insightful to say about it... if the stock was IBM or exxon, practically meaningless... if it was a $500M market cap biotech, i would look at it very seriously. [/ QUOTE ] Correct answer. It happened four years ago and it tripled. It is important to understand that this wasn't really a question about the stock market. [/ QUOTE ] Right... so if someone told you beforehand to get out of Enron because they had insight about the fraud involved in the company, that is basically meaningless. [/ QUOTE ] And if pigs had wings they could fly. The point is it's doubtful an expert could have accurate insight about the fraud if the current asking price didn't already reflect that. With a very small company, it can happen.
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#28
03-04-2007, 06:42 PM
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Re: Would You Buy This Stock?
[ QUOTE ]
[ QUOTE ] depends on the market capitalization...the smaller the market cap, the more likely he has something insightful to say about it... seriously. [/ QUOTE ] Correct answer. It happened four years ago and it tripled. It is important to understand that this wasn't really a question about the stock market. [/ QUOTE ] Obviously, no one can predict prices 4 years in advance. The real question is are you comfortable trading on inside info and riskin gprisoin and fines.
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#29
03-04-2007, 06:45 PM
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Re: Would You Buy This Stock?
[ QUOTE ]
[ QUOTE ] depends on the market capitalization...the smaller the market cap, the more likely he has something insightful to say about it... if the stock was IBM or exxon, practically meaningless... if it was a $500M market cap biotech, i would look at it very seriously. [/ QUOTE ] Correct answer. It happened four years ago and it tripled. It is important to understand that this wasn't really a question about the stock market. [/ QUOTE ] Warning: perhaps too much within a specific context for anyone to care about... I know you don't care much for "high falutin philosophy" but formal epistemology might be grounded enough in math for you to care. Too Odd Not to Be True There is a lot of contemporary conversation about the merit of this idea, with a recent negative result by Olsson and this being a more positive outlook. Skip to the end (557) for a discussion of a similar situation as the one you outlined.
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#30
03-04-2007, 07:49 PM
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Re: Would You Buy This Stock?
[ QUOTE ]
Assuming the stock was $10 the day he told me about it, what's its EV two years later? [/ QUOTE ] BUY BUY BUY!
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