HOLLYWOOD STOCK EXCHANGE
THE ENTERTAINMENT MARKET
THE ENTERTAINMENT MARKET
Response to THETOM for a post below about KCHAN IPO....
This is a generic response....Generally, Anitbody/DMac/HSX does not want to give away "free money" so the IPO price of StarBonds is generally based upon the NEXT adjust, not the current TAG.
So in this case, the current TAG is about 115, pretty high, but he is attached to KKONG, whch alone contributes over 70 to the TAG.
The next attached movie is priced even higher so the formula adds about 1/4 of the difference betwen the next movie, SUPR8, and the current TAG. The IPO price is usually set to be a little below the estimated next adjust price.
Now, if SUPR8 continues to rise in price, let's say another 80 points, well dividing by 4, this StarBond could increase by another 20 points, but that would be in July. Of course, SUPR8 could tank, and the StarBond could be a short....you have to keep your eyes open.
But generally, the IPO price shoud be a little less than the next adjust.
RGRIN and EMWAT were great examples. Because of all of the HPOT'S in the filmograpy, their IPO price was in the vicinity of 200. (There were smaller films to factor in and Antibody waited for the existance of non-HPOT attachments before considering the IPO in the first place.)
I hope you get the gist of this, as I have been wordy, but if you watch the IPO's, most point upwards, slightly.
Enjoy the StarBond market
