I love your point 2.
After you bought shares is the company a little bit more sh1t or a lot more sh1t?
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Haha yeah. It's worth noting that you can actually have a greater return in the long run if the share price drops significantly while the company's earnings drop a little.
Heres an basic example.
Company metrics. 10000 shares outstanding, earning $10000, EPS $1. Market price per share $5.
Example 1. No change in EPS, no change in market price per share. Investor owns 1 share, reinvesting all earnings. Nothing changes for ten years.
num of shares owned after each year
1 years. 1.2
2 years. 1.44
3 years. 1.73
4 years. 2.07
5 years. 2.49
6 years. 2.99
7 years. 3.58
8 years. 4.30
9 years. 5.16
10 years. 6.19
Investor earning $6.19 each year from his shares
Example 2. EPS drops to $0.9, Market price per share drops to $1. Investor owns 1 share, reinvesting all earnings. Nothing changes for ten years.
num of shares owned after each year
1 years. 1.9
2 years. 3.61
3 years. 6.86
4 years. 13.03
5 years. 24.76
6 years. 47.05
7 years. 89.39
8 years. 169.84
9 years. 322.69
10 years. 613.11
Investor earning $552 each year from his shares.
Lots of recent posts deleted from this thread, including the be Balance offered up to Sailorboy.
Yes, a lot of nonsense from the sailor picking fights with everyone and anyone as usual. Along with the usual litany of lies.
Not a surprise that admin has intervened.
Hopefully Snoopy and others who understand how OCA works will come back and continue to enlighten the rest of us.
What do you think the chances are of OCA hitting $3.30 by or before 2040, or a take over before then that would see a 10% CAGR?
If you were organising the bet, how would you treat a takeover or a large one off dividend?
Do you think that Balances play was to take the bet and then I would lose if there was a takeover as then 2040 price doesn't exist?
Hi All. Its very rare i would contribute to this thread as i do not have the intellect or skill set to really provide anything insightful but i do value all the differing points of view and analysis that so many provide who have a much greater knowledge than I. Whilst i enjoy reading the comments it does appear that the commentary of late has deteriorated to what i would call playground antics(no offense meant to anybody or anyone in particular). It is a shame that what is generally a great site has gone down this pathway and i would please ask that all refrain from anything outside good decent and respectful postings and bring this site back to quality it has been and is known for. Im sure all would agree. :)
Yes, we have some very slow learners on this thread. Agree 100%. If you can’t comment respectfully then don’t bother to comment at all.