PART II
GAME - Pick a punter.
Investor No.1
DATE: period from June - November 2008
DEBT: HUGE - June $523-1,250 million
SHARE PRICE: From $2 down to $1.4
GLOBAL FINANCIAL CLIMATE: CHAOS
BOTTOM FLOOR: Unknown
INVESTMENT CAPITAL $100,000
SHARES ACQUIRED: 60,000 (rounded/average price)
If still holding the value is $30,000 or 70% LOSS
Investor No.2
DATE: September 2009
DEBT: $200 million
SHARE PRICE: $0.25
GLOBAL FINANCIAL CLIMATE: Stabilising.
BOTTOM FLOOR: approx. $0.15
INVESTMENT CAPITAL: $100,000
SHARES ACQUIRED: 490,000 (rounded/360K @ 0.25 and 130 @ $0.12
To make an equal loss as Inv. No.1 ELD SP would need to fall to $0.06
Question - If the GFC scenario from September -November 2008 and March 2009 were to happen again, would you (as an investor) invest your capital in a company that had $1.2 billion debt?
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