HOLLYWOOD STOCK EXCHANGE
THE ENTERTAINMENT MARKET
THE ENTERTAINMENT MARKET
Adjustments of MovieStocks are an attempt to move the price closer to the "delist" amont...(watch my terminology)
On average, the 4 weekend delist price is about 2.7 times the opening weekend. Some movies do better than average (Have long legs) and many do not. But if you campare the price at noon on Friday (try the halted MOVIE.OW times 2.7) to the eventual delist, the adjusted price is much closer.
In the modern HSX, with lots of early estimates published on Friday and Saturday, there is a lot of movement of the MovieStock prior to the halt on Saturday at 6PM PT, as traders are trying to flip their positions to point the right way for the adjust, and the prices move a lot. Exciting, keep your calculor function handy, and go with the flow when you are not sure. If a move is going to open at 20M, and it adjusts to 54, then you want to have your holding long or short pointing in that direction.
After the adjust on Sunday, the price of the MovieStock is halted until reset (midnight PT) and then market forces move the stock price for 3 weeks until delist. Daily and weekend box office receipts (Box Office Mojo is the best place to see these) help give clues to how well sales are holding up.
Movies tend to follow a 50% drop week to week. A smaller drop in sales means it is holding up well. A bigger drop means it is doing poorly. As a beginner, concentrate on opening weekends for the time being. Big motion can mean big profits to build a portfolio.
StarBonds are a completely different story. There is no percntage adjust. They adjust on the day after their attached movie delists. There is a number called the TAG (Trailing Average Gross) based upon the last 5 movies that the performer was in. The price of the StarBond is ADJUSTED to match the TAG the day after the delisting of the attached movie, following a formula (see the glossary)
Since the next movie is known, and the movie it is replacing is known, the Expected Adjust Price (EAP) can be calculated in advance.
You try to make StarBond investments to make the most bang for the buck. There is a formula for daily Return On Investment (dROI) which takes into account the profit to be made as a percentage of your investment over time. These numbers are seen on the How Profitable charts.
It is a lot to chew on in one meal......come back when you have more questions.
Adjustments Jun 08, 10:17
formulas are in Calendar...reachable at the top of every page...News & Events ->Market Calendar...happy trading! {nm} Jun 08, 10:58
as for your other questions...a lot of info at bottom of every page...various links under the Help section {nm} Jun 08, 10:59
You should check out the glossary (link is at the bottom left of every page) Jun 08, 11:02
Some comments not related to Adjusts ... Jun 08, 18:15
Adjustments Jun 09, 11:23
Adjustments of MovieStocks are an attempt to move the price closer to the "delist" amont...(watch my terminology) Jun 09, 20:40
