HOLLYWOOD STOCK EXCHANGE
THE ENTERTAINMENT MARKET
THE ENTERTAINMENT MARKET
you need to distinguish between the bond's "TAG" and its current price
The bond you mention has a TAG of about 106. That is the average of his last five films (with the caveat that if a film makes over 250 million, it is capped at 250 for star bond TAG purposes). If you drop a 26 million film from the TAG and replace it with a 1 million movie, the TAG will drop; you are correct. So, when the adjust happens, the TAG will drop. However, the trading price of the bond is presently below the bond's TAG, and, in fact, it is trading below what it is projected to adjust to when the 26 million dollar movie is replaced with the 1 million movie. For this reason, Jimmy Smits bond is considered a BUY by people following the bond market.
Does this make sense ?
JEDAV Lives! (And A Starbond Quiz) Jul 14, 06:05
StarBond Question Jul 14, 15:18
you need to distinguish between the bond's "TAG" and its current price Jul 14, 15:32
StarBond Question Jul 14, 17:54