| Tuesday, May 10, 2005 - 06:17 pm |
It's not an exact science .. it never is but the graphs they have do tell the tale if you bother to read them.
Simple fact of the matter is when the P/E is below 20.0 you'll see some automatic buying by investment funds. The lower the P/E the higher the demand.
Automatic buy orders are canceled after 4 game months. If the P/E is still low they will be replaced, if not they won't.
The demand can go from high to nothing in a heartbeat.
When the P/E is below and rises to 10.0 small amounts of stock become available for sale. If you are in a position to .. you begin to sell at this point if not ride the crest and buy when shares drop and are being dumped again.
If you are buying stock in a corp that is being upgraded .. you better have your position set before it's maxed out or you have to work with 10,000 shares at a time rather than 10 million to improve your situation.
If you can't own 30% of a corp as an investment fund for a zero investment it's not worth having. If you can't own 51% of a corp as a country or enterprise .. it's not worth having.
Once your position is locked forget about it you'll recieve profit payments when it makes money you lose nothing if it goes broke or someone nukes it.
Another strategy is once you have zero investment in a corp at 51% and the corp is fully upgraded .. sell down to 24.99% when prices are high so it upgrades further.
Sure someone can eventually buy a controlling interest but you are in a position to rape them when the stock prices eventually fall again due to lower profits when the upgrades decrease.
There is nothing more satisfying than buying out someone that grabbed 51% of the stock in a company you built at 15K per share when you buy them back through forced auction and end up with an investment of .03 per share and get to start all over again.
Hostile takeovers of public corps are a war in themselves. The only problem with public corps is W3 limits the number you can buy shares in, so at some point you have to cull the trash.
Eventually you get a feel for the situation .. when I run across a public service corp for example that is being upgraded, has 100M shares, cash no or low debt being dumped at 135 per share and a 999.0 P/E I don't even need to look at any graphs to snap up all the stock I can lay my hands on.
I generally avoid corps with more than 100M shares since usually the owner is a moron but .. there always comes a point where if they don't go under a killing is there to be made.