OTCPK:EUCTF - Post by User
Post by
kidl2on Nov 30, 2017 2:46pm
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Post# 27066036
The “wisdom” of buying at cash value
The “wisdom” of buying at cash valueIsn’t this akin to parking your money in one of these negative interest bank accounts offered, per example, in Switzerland? They charge you 0.5 or 0.75% for the privilege of holding your cash. One could argue that you get the benefit of the stability of the Swiss Franc in exchange for this negative interest rate.
If one now goes and and compares such a negative interst account to buying EUO at cash value, it looks like this:
Holding 100,000 SF with a 0.75% negative interest (fee) will leave you with 99,250 SF after 12 months.
Investing the same 100,000 SF in EUO will leave you with maybe 75,000 SF after 12 months as EUO burns through at least 25% of its cash on an annual basis and that is allowing for the SICPA minimum royalty payment.
Seems to make the Swiss bank account option look like a really good deal, eh?