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Playing & Trading Strategy

if you see a StarBond dipping, check the status of the Star's next film...

Posted by: DoctorMovies on Jul 17, 21:11 in response to greatcakes01's post When to leave a movie or star

a StarBond goes up or down based on the expected gross of the Star's next film.  The Star's TAG is a measure of the avg gross of the Star's last 5 films.  This is provided the star has been in at least 5 listed films, otherwise cosult Tools of the Trade. 

Example. John Malkovich.  His latest film is Transformers 3.  His current TAG is H$32,133,430.  If you count JMALK's last 5 listed films, you'll see Mutant Chronicles is the last.  It grossed $4,724.  Because Transformers 3 has already grossed more than Mutant Chronicles, we knows JMALK's future price will be higher than his current TAG.  To calculate how much higher, we do this:

(32,133,430 X 5) - 4,724(Mutant Chronicles)

32,128,706

We add the gross of the most recent film, Transformers 3 (so like $300 million).

332,128,706

To get JMALK's TAG (the average gross of his last 5 films, now including Transformers 3), divide by 5.

66,425,741.  JMALK's new tag will be over $66 million.  So you could say he is still underpriced at H$51.83, as the price of the stock will adjust to over H$66.00 once Transformers has run its course on the market. 

But if you think you can make more than about 15/share in that same span of time with a different investment, ditch JMALK and go with the other one.  All this is to say that if you see the price of of a StarBond dipping, it may be their upcoming film is taking longer than expected, or the excitement for it has died down.  Generally there are many StarBonds available, like JMALK above, whose growth is a mathematical certainty.  Take time to find StarBonds you know are growing, and you won't have to worry about the dips in the road - you should always have a clear idea of how much that stock will be worth in a given amount of time, be it 1 week, 1 month, 2 years, etc.

Hope this was helpful.  The Dr. is taking up residency and will be here to help. 





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