Wednesday, June 29, 2005

The Stars are looking bright tonight

Well, today I sold a large chunk of the shares I had in War of the Worlds. It shot up last night and I didn't know if I should take the risk in this summer movie slump. I'd say I got rid of about 3/4 of my stock in the movie.

So now that I had a lot of spare H$ on my hands, I did some research and changed my strategy towards Hollywood Stock Exchange. I have chosen a more conservative route of investing in movies stars themselves, rather then their movies. A movie's stock price gets adjusted to match its opening and closing price, however an actor's/actress's Starbond gets adjusted to the average of their last five movies after they star in a movie. For example, this week Russell Crowe's Starbond adjusted to the average of his last five movies because he recently starred in Cinderella Man.
For anyone reading that actually plays on HSX, I'll give you a hint on one of the trades I made this morning. I bought all the stock I could in Kelly Hu (KHU). If you look at the price of her Starbond, it currently trades at about H$62, and she has a movie called Underclassmen coming out August 5. However, the average of her last 3 movies (she's only made 3) is H$113. So even if this new movie makes no money, her stock will eventually adjust to H$85, or a gain of H$23 per share. There's all this math to the calculations, but it doesn't matter. Kelly Hu is a good buy.

2 comments:

Liverlvr said...

You got out of War of the Worlds! I'm thinking about doing the same, and then getting back in if the price drops before Friday.

Liverlvr said...

Doh... WARWD is already halted. Oh well, I guess I'll see what happens after this weekend.