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.
AVX Price at posting:
17.5¢ Sentiment: ST Buy Disclosure: Held
