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Message: Re: One question

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Alton, I don't know if my math is different from yours, but 19 years ago, us long timers bought stock in $20,ooo lots for $1.00 a share. during the course of a few years, tthe share price dropped to $.20 or less per share. Using $20,000 shares as an example, after the split, , each share was worth $1.00 per share ($.20 X 5). I ended up with 5,000 shares instead of 20,000, so in order to make up the orgional value, I have to make $5.00 a share for each share I sell to break even. This is where the split made a difference. Now the stock is trading at $1.13 - $1.40 a share, I have to make $5.00 a share to break even for 20,000 shares that went to 5,000 shares after the split.

If we went back to the original situation, the stock (5,000 shares would become 20,000), and the share price would be $.22 per share. Then I would only have to make $1.00 to break even on my original investment. Am I making sense or am I wrong? I understand the share price went up 5X in value, but it's hard for me to visualize that the value has to increase 5X to break even on the original investment. If I sold today at $1.13 a share, I would have to make $5.65 on the same share to break even.


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