Yes your scenario is quite possible.
But when I take a position I look not only on the potential return on that position, but the return of my position (ie I don't like losses).
So I prefer only accepting those 'pitches' whereby I have a high degree of probability of not just getting my capital back but also generating a decent return on that investment.
This is just my personal preference.
At least with ASB trading down nearly 50% off its highs, there is some margin of safety at around $2.00
Ann: Earnings Guidance Update, page-58
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Last
$3.16 |
Change
-0.110(3.36%) |
Mkt cap ! $1.145B | |||
| Open | High | Low | Value | Volume |
| $3.26 | $3.26 | $3.06 | $8.049M | 2.548M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 11209 | $3.15 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $3.18 | 4683 | 1 |
View Market Depth
| Last trade - 16.10pm 15/11/2024 (20 minute delay) ? |
| ASB (ASX) Chart |