HSX Forum

CelebStock and StarBonds

a little historical perspective

Posted by: ProjectGenome on Nov 17, 11:45 in response to shwuck's post Why worry about the fall...

One of the very first bond adjusts under the old system, way back in 1997 (IIRC) was for RATKI, for the first Mr. Bean movie.  RATKI hadn't had any other attached movies, and under the rules at that time, the bond was going to up, way up, like 500% or something like that at adjust.  I mentioned this in a column, and Max read it, and halted trading or something so that nobody got the money.  Not too long after that, you had the TITAN bonds, which all went way, way up, and caused a big market distortion.

Anyway, point is, that HSX doesn't like great big huge adjusts that distort the market.  Raising the cap will cause huge, out-of-control adjusts that inject a lot more money into the system.  Moreover, doing that makes bonds more valuable, and bonds aren't the point of HSX from a research standpoint anyway.

And it will cause a lot more work for me, recalculating stuff, and I'm too lazy to support such a thing  But that's me.

Is it time to raise the H$250M cap when calculating TAGs?? Rationale inside... shwuck Nov 17, 10:34

Furthermore... shwuck Nov 17, 10:53

Try it the other way. In 10 years that I have been here, we have averaged 5 per year. This winter, other than HPOT7, we may not have any StarBondsFund BUY Now Jets7-2 Nov 17, 10:57

Umm, HPOT7 will be the 6th movie this year if it holds at it's current price... not the first. shwuck Nov 17, 11:03

The reason to change the cap is for greater accuracy in TAGs, for example HPOT1-6 are underTAG'ed by H$35.48 on avg. Thats a huge miscalc {nm} shwuck Nov 17, 11:18

Most films above $250M are the big special effects films. It's no longer about "starpower" that TAG is trying to approximate. {nm} Antibody Nov 17, 11:40

Using this argument, then all of the Starbonds should be detached from Special effects movies... let's be consistent in our defenses here {nm} shwuck Nov 17, 11:43

Therefore, a cap is better than no attachment. {nm} Antibody Nov 17, 11:45

No, a cap arbitrarily decides the max worth of an actor or director. Examples... shwuck Nov 17, 11:52

It is an uneven device at best.....When all of the small roles in HPOT7 count the same as DRADC there is somehing wrong.... {nm} StarBondFund BUY NOW.. Jets 7-2 Nov 17, 13:36

I can agree to that point... but that is not an argument against adjusting the cap... shwuck Nov 17, 13:42

Good luck differentiating between lead, supporting and cameo. {nm} Antibody Nov 17, 13:43

WORD. {nm} secretstalker Nov 17, 16:49

Like determine the roles and % isn't arbitrary. {nm} Antibody Nov 18, 11:41

Creating a new set of rules to manage the process is less arbitrary than penalizing actors in movies that did exceptionally well {nm} shwuck Nov 18, 11:52

Your proposal has multliple arbitrary rules vs. the current system's one ,arbitrary according to you, rule. {nm} Antibody Nov 18, 13:04

Even with DRADC, people are going to see "Harry Potter", not DRADC. He's not gonna bring $250M to a non-Potter film. {nm} Antibody Nov 17, 13:56

The counter to that argument is that the studio could have replaced DRADC and gotten another Harry Potter at any point {nm} shwuck Nov 18, 11:54

Yes, see James Bond, HULK... {nm} Antibody Nov 18, 13:01

But the number of films making $5 million or less is probably the same. The cap is not just to limit the top, it's also to lessen the fall. {nm} Antibody Nov 17, 11:16

Why worry about the fall... shwuck Nov 17, 11:27

SWORT shouldn't be penalized if he makes an indie film that replaces AVATR, so the drop is mitigated to at most $50 ($250/50). {nm} Antibody Nov 17, 11:44

I mean 250/5 {nm} Antibody Nov 17, 11:46

He's not being penalized... HE CHOSE to make the lesser movie. Actors sometimes chose NOT to be in the biggest flick {nm} shwuck Nov 17, 11:53

a little historical perspective ProjectGenome Nov 17, 11:45

Thanks for the perspective... all i am really arguing is that the caps should be increased slightly to reduce inacurracy {nm} shwuck Nov 17, 11:59

You're looking to make more H$, not "accuracy". {nm} Antibody Nov 17, 12:21

The only reason would be making more money now is because things aren't accurate now. Why won't you want to be accurate? {nm} GBlaylock Nov 17, 12:25

Better wording - Only reason would make more money now is because things weren't done accurately before. {nm} GBlaylock Nov 17, 12:27

Of course... the POINT of the game is to make more H$. But ... shwuck Nov 17, 12:36

err, should have said... Daniel Radcliffs TAG is only worth 88% of it's true value {nm} shwuck Nov 17, 12:37

As I pointed out, once you get above $250M, it's the benefit of special effects. {nm} Antibody Nov 17, 12:58

So the Blind Side, Meet the Fockers, and the Passion of the Christ were all driven by Special effects? shwuck Nov 17, 13:07

They will always be outliers, which is what the cap is for. {nm} Antibody Nov 17, 13:17

For PASON, if you believe, absolutely, That IS the mystery is it not? {nm} mrbinns Nov 17, 13:21

Titanic was 100% a 'special effect movie'; cardboard cutout characters, predictable plot; all about the effects pedant Nov 17, 13:58

Example: SBULL's next adjust... her TAG will be H$1.00 less than it should be. shwuck Nov 17, 12:57

I'll live with $1 difference. {nm} Antibody Nov 17, 13:05

Why should we have to consistently be wrong for all movies abouve H$250... of which there will be more!!! {nm} shwuck Nov 17, 13:17

I've never understood why after being delisted, a movie's gross continues to count toward a StarBond's TAG GBlaylock Nov 17, 11:30

This solution also seems more fair. See my Sandra Bullock example in the first post {nm} shwuck Nov 17, 11:32

It's a bonus incentive to hold a StarBond beyond the adjust. {nm} Antibody Nov 17, 11:35

How is it an incentive? The TAG goes up, not the stock price. The stock price depends more on the next film, not the previous. {nm} GBlaylock Nov 17, 11:38

The added box office is counted on the next adjust. {nm} Antibody Nov 17, 11:42

Again... this is an incentive to project the TAG after the actors NEXT adjust and act accordingly... not an incentive to hold outright {nm} shwuck Nov 17, 11:46

But that adjust only depends on the next film and the sixth film (the one being dropped from TAG) GBlaylock Nov 17, 11:46

In that case, the additional box office would lessen the fall. {nm} Antibody Nov 17, 12:07

Let's reverse this argument - not if the movie was capped. The fall for SWORT only softens to H$250 if his next movie is an indie. shwuck Nov 17, 12:16

The additional box office added after the movie is delisted has nothing to do with the rise/fall afterwards GBlaylock Nov 17, 12:19

Unless a star is in 6 movies in a VERY short time, the blockbuster they are dropping would have stopped adding to TAG a long time ago. {nm} osmosis2003 Nov 17, 13:23

That argument only applies in relation to the next movie the actor is in... if they aren't in a movie for a year, the incetive to hold drops {nm} shwuck Nov 17, 11:40

No, because ultimately a StarBond would cash out at TAG due to inactivity. {nm} Antibody Nov 17, 11:48

Ha, so you are saying the incentive is to hold and HOPE for a StarBond's inactivity to cause a cash out - which could take years. GBlaylock Nov 17, 11:56

It's just one way that a StarBond retains value, not saying it's the absolute reason. {nm} Antibody Nov 17, 12:14

This argument only works if bonds AUTOMATICALLY delist for inactivity, rather than being chosen via a random process at random times {nm} shwuck Nov 17, 11:56

You know it's not random. {nm} Antibody Nov 17, 12:09

Really? there are bonds out there that are more than 3 years past the last activity... why haven't they delisted ? {nm} shwuck Nov 17, 12:18

Random would I pick all the StarBonds without attached out of a hat regardless whether it's 1 week of 10 years from their last film. {nm} Antibody Nov 17, 12:19

So when are StarBonds cashed out due to inactivity? {nm} GBlaylock Nov 17, 12:23

The guideline is after 3 years from their last film. Cashouts happen every few months so it's not exactly 3 years. Antibody Nov 17, 12:34

So the reason why say Frankie Muniz and Illeana Douglas haven't cashed out yet is . . . . ? GBlaylock Nov 17, 12:47

They were attached to films that just went STV recently. {nm} Antibody Nov 17, 12:55

WHO CARES... they were past the 3 year mark... Frankie should have delisted over a year ago to keep the integrity of the rules... shwuck Nov 17, 13:01

If a StarBond was still attached to a listed MST, he's not eligible to be delisted as inactive. {nm} Antibody Nov 17, 13:04

If there was never a moviestock attached to the bond, then your argument proves my point. Only moviestocks attached to a bond should apply shwuck Nov 17, 13:26

FMUNI was detatched from MYSYR in Sept. 09... again... why wasn't he de-listed this year - at any point {nm} shwuck Nov 17, 13:35

Sep 13, 2010. {nm} Antibody Nov 17, 13:39

Okay, not random - more like arbitrary...once they do cross the 3 year mark it there are pretty thin reasons they shouldn't delist. shwuck Nov 17, 12:27

The best example for counting post adjust box is MBFGW....should it count for 23.58 or 241.44 StarBondFund BUY NOW.. Jets 7-2 Nov 17, 13:31

If it is raised it should be going forward and not retro active {nm} laujer Nov 17, 13:32

Agreed... that would prevent wild swings. Make it easy... all movies delisting after 1/01/2011 will be creditted at the higher cap {nm} shwuck Nov 18, 06:41

This was one of the most interesting threads I've read here this year... thanks :) {nm} Chefbobcat Nov 18, 21:08





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