Multiples Needed to Breakeven from Drawdowns
One of the most often misunderstood concepts in investing is the difference in percentages from a drawdown against an increase. For example, if a stock declines by 10%, a subsequent increase of 10% will not bring the investor back to breakeven, but rather an 11% increase in the price is required to break even. For example, a $10 stock declines by 10% to $9, a subsequent 10% rise from $9 brings the stock up to only $9.9. Below we have listed various drawdown percentages in increments of 10%, and the subsequent percentage increases needed to break even, along with their respective ‘multiples. For example, a 90% drawdown in the price of a $10 stock requires a 10X to bring the stock back up to $10.
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A winner for him, the parent company of Titleist and Footjoy brands, a leader golf brand. Shares have climbed 4-fold since late 2016, an outperformer. The stock has swung a lot the past year from inconsistent quarters, but it bounced but with a strong Q3 surprise, but the next quarter last February was mixed with a revenue miss. Remember that golf is a seasonal game, so one quarter will be weak. Their 2025 guidance is mixed: slightly weaker sales and in-line EBITDA. Sales are slowing though. He's not worried about their guidance, which is usually cautious, and this is a tought environment. They are buying back $250 million of shares and raised its dividend which is small though. This signals confidence.
CCO has had three broker target price downgrades in April. In addition, the uranium sector has been weak as investors consider whether Russian exports will be allowed to resume if there is some resolution to the Ukraine War.
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