Wednesday, 13 February 2013

How can I calculate starbond adjusts quickly?

Starbonds are priced by how much their movies make at the box office, as measured by their Trailing Average Gross.

For most starbonds, the Trailing Average Gross is the average North American box office take of their five most recently-released movies.  Other, similar formulas apply to starbonds that are attached to fewer than five moviestocks, and you can check those formulas in the HSX Glossary under "Trailing Average Gross".

When a starbond is credited to a moviestock, and that moviestock delists from HSX, the TAG is recalculated and the following day, the starbond price will be adjusted in price to match the new TAG

Most starbond calculations are very simple, and you can easily do them in your head or on a piece of paper.  One way of making the calculation is by following these easy steps:
  1. Subtract the gross of the movie dropping out of the TAG from the expected gross of the movie coming in.
  2. Divide that number by five.
  3. Add the result to the starbond's TAG to get the estimated adjust price.
  4. Compare the estimated adjust price to the current price.
  5. Invest (or not) accordingly.
Being able to calculate future adjusts like this means that you can respond more quickly to news and events that impact starbonds, like a sudden release date change or a movie opening way higher (or lower) than expectations.  The sooner you can react, the better you will be able to identify which starbonds are going to have the biggest price movements from news.

Not every starbond adjust is simple, and there are a few exceptions and technicalities which are discussed in another column.

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