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Joe Duffy's Diary : April 1, 2001
9:35 am - ERELS' stock price has been moving between $19 per
share and $15 per share for the past week. Today it is at $15 per share. I decide
to purchase another 1,000 share of ERELS at $15 per share. I like the movement
of the stock. I feel it tells me other investors like ERELS as well with more
and more investors taking notice of the stock since the trade volume has been
larger than normal this past week.
Also, at $15 per share, and 100,000 shares outstanding, his market capitalization
is $1.5 million. I think Els will definitely earn more than $1.5 million over
the year.
I go about submitting the order the same way I did on March
24th. I make the order a limit order like I did last time as well.
4:07 PM - I receive an email telling me my order is executed.
Now I own 2,000 shares of Ernie Els.
At $15 per share, that is a value of $30,000. I think Els will earn between
$2.5 million and $3.5 million this year. If he does, and he doesn't issue any
more shares on the 2001 PGA Season Market, that means his stock should be worth
between $25 and $35 per share. For me, that means if I hold onto the shares
until the finish of the market in December, the value of the 2,000 shares I
own of ERELS will be worth between $50,000 and $70,000. That is a return on
my investment (ROI) of 66.6% to 133.3%.
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