Hi all,
I offer a stab at a ball park risk reward calc for AVX at the moment.
Risk: If upcoming results are bad (eg ATC not performing). Assume SP goes back down to 6 cents.
Reward: If upcoming results are good (ATC performing well enough to possibly attract buyer). Lets assume SP goes up short term to 45 cents (this is conservative I feel given that it spent nearly 1 yr around 60c before GFC with much less trial evidence).
Risk/Reward is between 1:2 and 1:3. This sounds like a fair buy, but not an exceptional one (eg around 1:5).
These are just my gut feel numbers and I would appreciate any feedback or comments on better estimates.
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