b_A - LGND

Propagandhi711 wrote:you were saying last year that LGND has a chance of going parabolic when it was in 70s (before it dipped to 40 and shot all the way back up to 82 today). chartwise it has been giving strong buy signals over past couple of weeks, do you still see it going parabolic? fwiw I hold a decent number with average price of 53 and am holding. question is, do still think it's worth adding to?

swapna wrote:

Propagandhi711 wrote:you were saying last year that LGND has a chance of going parabolic when it was in 70s (before it dipped to 40 and shot all the way back up to 82 today). chartwise it has been giving strong buy signals over past couple of weeks, do you still see it going parabolic? fwiw I hold a decent number with average price of 53 and am holding. question is, do still think it's worth adding to?

hahaha @"going parabolic"! voodoo? don't forget the "junnu" and the silk vest that your mother "stitched" for you.

swapna wrote:

Propagandhi711 wrote:you were saying last year that LGND has a chance of going parabolic when it was in 70s (before it dipped to 40 and shot all the way back up to 82 today). chartwise it has been giving strong buy signals over past couple of weeks, do you still see it going parabolic? fwiw I hold a decent number with average price of 53 and am holding. question is, do still think it's worth adding to?

hahaha @"going parabolic"! voodoo? don't forget the "junnu" and the silk vest that your mother "stitched" for you.

truthbetold wrote:J

swapna wrote:

Propagandhi711 wrote:you were saying last year that LGND has a chance of going parabolic when it was in 70s (before it dipped to 40 and shot all the way back up to 82 today). chartwise it has been giving strong buy signals over past couple of weeks, do you still see it going parabolic? fwiw I hold a decent number with average price of 53 and am holding. question is, do still think it's worth adding to?

hahaha @"going parabolic"! voodoo? don't forget the "junnu" and the silk vest that your mother "stitched" for you.

Swapna/slimyflam
Have you lost your mind?

truthbetold wrote:Slimy
If you are unaware of the relationship between your avg price and decision to sell, you should not be posting on this thread. 
Go back to your miserable lonely life.

swapna wrote:

truthbetold wrote:Slimy
If you are unaware of the relationship between your avg price and decision to sell, you should not be posting on this thread. 
Go back to your miserable lonely life.

soothbesold, i'm still waiting for you to enlighten me on how a rational investor's future decisions on buying and selling stock might be influenced by the average price he paid for his current holdings.

I did say "rational investor," not silk vest-wearing, junnu-gulping, going-parabolic, voodoomeister.

truthbetold wrote:Slimy
There is no such thing as rational investor. Only breed out there is greedy. But that is not relevant.

Ex: 9 months back you bought Apple at 100. One month back you bought another share of Apple at 120. Today Your cost per Apple share is 110. That is the avg price paid. In other words your cost of purchase is 220 for two shares. Apple today is at 127.  You can figure out whether you make money or not with either avg price or total cost of shares.

Now if you want to bring in net present value into discussion, you can do that by adding terms to the simple math above. Logic remains the same. 

Traders, whose investing horizon is limited, use avg price. Long term investors can also use it with a npv adjustment.

Propagandhi711 wrote:you were saying last year that LGND has a chance of going parabolic when it was in 70s (before it dipped to 40 and shot all the way back up to 82 today). chartwise it has been giving strong buy signals over past couple of weeks, do you still see it going parabolic? fwiw I hold a decent number with average price of 53 and am holding. question is, do still think it's worth adding to?

swapna wrote:

truthbetold wrote:Slimy
There is no such thing as rational investor. Only breed out there is greedy. But that is not relevant.

Ex: 9 months back you bought Apple at 100. One month back you bought another share of Apple at 120. Today Your cost per Apple share is 110. That is the avg price paid. In other words your cost of purchase is 220 for two shares. Apple today is at 127.  You can figure out whether you make money or not with either avg price or total cost of shares.

Now if you want to bring in net present value into discussion, you can do that by adding terms to the simple math above. Logic remains the same. 

Traders, whose investing horizon is limited, use avg price. Long term investors can also use it with a npv adjustment.

you sound like a schoolboy proudly displaying his ability to calculate an average price per share for shares bought in different numbers and at different prices over a period of time!

notice that, despite knowing the average price per share of his LGND stock, and the current market price, poopah711 is unable to decide whether he should add to, lessen, or maintain his current holdings, and appeals to the byte-counter for advice.

the difficulty is that, in an asset-constrained environment, increasing one's investment in LGND lessens one's investment in other stocks, and the marginal value of investment in LGND is determined not only by the return from LGND, but also by the marginal opportunity costs (the "shadow prices") of the available assets.

thus, it's impossible to say whether one will "make money" if one sold off all of one's LGND stock, unless one takes into account all practical alternative investment opportunities, and one's resource and risk constraints.

in 2015, while the kind of investment portfolio optimization under constraints that I've hinted at is not impossible - markovitz and weingartner demonstrated it in the 60s - schoolboy calculations of average stock prices and their use in investment decisions are naive and pointless.