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my take:

Posted by: Oleg Max (a.k.a Oleg_Max) on Jul 06, 07:40 in response to elchan's post Please explain the strategy behind why someone would buy...

If it sticks to its current 3 day release date, I see this stock going to mid 300's. OW of 130 x 2.7 = 351. I have almost $H3 billion in cash that is paying 25 bps. Would I keep my investment that might generate 5,000 bps = 50% or sell it and move to cash? There are lots of people that have excess cash that will hold the security. Then, there is new influx of buyers that moves the stock up.

Keep in mind, HSX is designed to predict an opening wknd, so when it is more or less a sure thing at the box office, then it's more about cost of capital and NPV = Net Present Value discounted to today. All things being equal, price should keep moving up (there are of course daily fluctuations, daytraders, news related to the stock, and other factors).

Please explain the strategy behind why someone would buy and hold SPID5 for over a year? elchan Jul 06, 07:21

there are way more part time players than there are regulars. buy and hold is an easy strategy for someone who either doesnt know better or islander Jul 06, 07:24

I often buy and hold the next 2 years tent-poles. Scorpion Jul 06, 07:36

When your port is huge, and you have cash laying around, why not buy as many stocks (short OR long) as you can..put the $ to work! {nm} Flash Jul 06, 07:39

But the dROI is so small to hold it for another year. Any actively managed fund would get at least 1% dROI. elchan Jul 06, 07:50

while 1% sure is desirable, you face a different problem when port grows too big. Oleg Max Jul 06, 07:56

I need to keep that in mind when I become a billionaire. ;-0 {nm} elchan Jul 06, 08:00

You don't need to be a billionaire. @ about half a billion you start running out of stuff to do with your excess cash. Scorpion Jul 06, 10:54

Yeah, I've made a billion so far this year. My average daily change is 0.06% {nm} RogerMore Jul 06, 08:27

my take: Oleg Max Jul 06, 07:40

But, mid 300s seems impossible at current pace, to me. I guess people are still holding on, until they see where SPID4 will actually land. elchan Jul 06, 07:45

it's a unique situation w/ SPID4, given that 3 days won't get a multiplier. SPID3 did 151mill that wknd in 2007.... Oleg Max Jul 06, 07:48