MM you got me thinking about potential purchases of LEI pre div (friday) and what upside v downside could be? Did a bit of quick maths here:
Sorry about format C & P'd from excel p = profit PP = purchase price X= holding Div=60c SP = Sell price
p =[(3/8 x X x 22.50) +( 5/8 x X x SP)]+ X x Div - (X x PP)
Break even p = 0 say 1000 shares @ $21 = $21000
0 = [(3/8 x 1000 x 22.5) + (5/8 X 1000 x SP)] + 1000 x 0.60 - 21000
21000 = 8437 + 625 SP + 600
11963 = 625 SP
SP =$ 19.14
(hope someone checks this; had a couple of glasses of red!) shows that could have bought on Friday (in fact it did not get down to $21 but cannot be bothered redoing sum) and put a stop loss in almost $2 (9.5%)lower & be assured of NOT losing $$$. UPSIDE: I guess any number is the TRUE upside but you would think if some VERY knowledgeable insiders were willing to pay $22.50 then a reasonable target?
I thought I was happy with my entry at much lower levels but this just may have been one of those opportunities where the kitchen sink should have been thrown ....
cheers g
LEI Price at posting:
$21.00 Sentiment: ST Buy Disclosure: Held
