LGL 0.00% $1.87 lynch group holdings limited

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  1. 5,801 Posts.
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    I agree - I think LGL has more upside. Plus, since they are a cheaper share, you should look at what I call "proportional change".

    Let's say you have equal dollar amounts of NCM and LGL. Say $25,000 worth (for the sake of this example).

    For NCM, you'd have about 1000 shares (rounding off)

    For LGL, you'd have say 10,000 shares. (once LGL reaches 2.50... ;) )

    Now, while a percentage change would be the same for both in cash terms, the proportional change per tick is 10 times higher for LGL. In other words, each 1 cent that NCM goes up nets you $10, but for LGL, it would be $100. And the cheaper stock is more likely to rise (or fall) by a few cents, rather than NCM which would have to rise by a few TENS of cents for the same change in worth. If you see what I mean... :)

    LGL is more likely to go up by 10 cents, than NCM is to rise by $1. That principle is why I don't hold shares such as RIO, IPL, etc. - I prefer cheaper shares but buy a lot of them. Bigger moves - but remember that it may be up OR down.

    Overall, I think that LGL has more potential upside than NCM anyway, and if you look at it via the viewpoint above, then you stand to make more of a profit. Just my 'umble opinion.

    Each to their own methods, and each to their own decisions, etc etc.

 
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2 1517 $1.70
 

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