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In essence, the buyer would be giving up some potential appreciation in return for protection against a falling market.
"We believe that the potential appreciation of the Adelphia systems may present a compelling reason for the creditors to support its emergence as an independent company," he wrote.
Using options can limit this risk, at the expense of some of the potential appreciation.
Looking at his current price targets and the room for potential appreciation, Mitchelson thinks that cable will be the best-performing media sector in 2008.
By doing so, a person can reduce an estate by the current value of the asset given, as well as by the value of potential appreciation and earnings.
Since the growth of BDCs is so closely linked to the potential appreciation of their portfolios, most investors pay closer attention to the NAV or more specifically, to how the share price compares with the NAV.
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An off-the-beaten-path location far from either Shannon Airport, in County Clare, or Dublin Airport can certainly temper value and potential price appreciation.
"Everyone was focused on quarterly results, not looking at the balance sheet and potential asset appreciation".
Goldman Sachs maintained an "outperform" rating for eBay and said it sees a "potential 30% appreciation" for the stock.
Corporate bonds, Canadian trusts and preferred shares offer fat yields and potential for appreciation, but you need to be selective.
His basic pitch: the better a property's location, the lower its initial cash-on-cash returns will be, but the higher its potential capital appreciation and liquidity are likely to be.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com