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Trader's Diary

Economic calendar

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Definition of terms:
Earnings

Earnings

refer to the profits or net income generated by a company during a specific period.

  • Earnings are a measure of a company's financial performance and are often reported on a quarterly or annual basis.

  • Positive earnings indicate that a company has made a profit, while negative earnings indicate a loss.

  • Earnings can be influenced by various factors, such as revenue, expenses, taxes, and other financial activities.

Code

The code is a unique identifier assigned to a company's stock by the stock exchange where it is listed. It is used to identify the stock in trading and other financial transactions.

Actual

Actual refers to the real or current value or result of something. In the context of IPOs, actual can refer to the actual price or number of shares sold in the IPO, as opposed to the estimated price or number of shares.

Estimate

Estimate refers to a prediction or approximation of something, such as the expected price or number of shares in an IPO. Estimates are often made by investment banks and analysts based on market demand and other factors.

Difference

Difference refers to the numerical or percentage variance between two values. In the context of IPOs, difference can refer to the variance between the estimated and actual price or number of shares sold in the IPO.

Percent

Percent refers to a fraction of 100, often used to express a proportion or rate. In the context of IPOs, percent can be used to express the difference between the estimated and actual price or number of shares sold as a percentage of the estimated value.

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IPOs

IPOs (Initial Public Offerings):

An IPO occurs when a private company sells its stock to the public for the first time to raise capital or money.

The money raised from an IPO can be used for various purposes, such as paying down debt, investing in the company's long-term health, research and development, expanding into new product lines, or purchasing fixed assets.

During the IPO process, the equity shares of private investors

convert into publicly owned shares of the new entity, and early investors may sell their stock once the company's shares begin trading.

The chief benefit of an IPO is to help the company raise money and gain access to the capital markets, allowing for expansion and increasing credibility.

Code

The code is a unique identifier assigned to a company's stock by the stock exchange where it is listed. It is used to identify the stock in trading and other financial transactions.

Name

The name is the official name of the company whose shares are being offered in the IPO.

Exchange

The exchange is the stock exchange where the company's shares are listed and traded. Examples of stock exchanges include the New York Stock Exchange (NYSE) and the Nasdaq.

Currency

The currency is the type of currency in which the company's shares are priced and traded. This can vary depending on the country and stock exchange where the company is listed.

Start date

The start date is the date on which the company's shares begin trading on the stock exchange after the IPO.

Offer price

The offer price is the price at which the company's shares are initially offered to the public in the IPO. This price is set by the company and its underwriters based on market demand and other factors.

Shares

Shares refer to the units of ownership in the company that are being offered to the public in the IPO. These shares can be bought and sold on the stock exchange after the IPO.

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Splits

Splits (Stock Splits):

A stock split occurs when a company increases the number of its outstanding shares of stock to boost the stock's liquidity.

In a stock split, the number of shares outstanding increases by a specific multiple, but the total dollar value of all shares remains the same.

Companies often choose to split their stock to lower its trading price to a more comfortable range for most investors and increase the liquidity of trading in its shares.

For example, if a company decides to split its stock 2-for-1, the number of shares outstanding would double, while the share price would be halved.

Code

The code is a unique identifier assigned to a company's stock by the stock exchange where it is listed. It is used to identify the stock in trading and other financial transactions.

Split date

The split date refers to the date on which the stock split takes effect. It is the date when the new shares resulting from the split are distributed to existing shareholders. Optionable

Optionable refers to whether the stock is eligible to be used as an underlying asset for options contracts. If a stock is optionable, it means that options can be traded on that stock.

Old shares

Old shares refer to the existing shares of a company before a stock split takes place. These are the shares that will be exchanged for the new shares resulting from the split.

New shares

New shares are the additional shares that are issued to existing shareholders as a result of a stock split. The number of new shares is determined by the split ratio, such as 2-for-1 or 3-for-2, where shareholders receive a certain number of new shares for each old share they own.

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Are tobacco companies able to defy the bans on cigarettes?

Date: 17.2.2023

As usual, I started my day on a positive note – with a cup of coffee and cigarette. As I was sitting on my balcony and smoking, I got this crazy idea, that was in front of me for the whole time. I asked myself, how is one of the biggest tobacco companies doing? I ran to grab my laptop and opened the chart of Phillip Morris stocks. What immediately caught my eye was the volatility. Usually, I am not used to seeing this kind of fast rising and falling in stocks, but this one is different. I noticed that we are right after the rise, and for 10 or so days the stock is moving sideways, not going anywhere. If the history of price will repeat itself, the price should drop. But this is only based on technical analysis of the chart. As I consider myself as some sort of analyst, or let’s say I really do enjoy capital markets, I decided to quickly check the news, e.g., perform a fundamental analysis. Few clicks on the internet and I found a very interesting article – well, probably not so amusing for smokers in Mexico. Mexico decided to put ban on smoking on ANY public spaces. Imagine. That includes restaurants, beaches, etc. And I thought to myself, if a country with 126 million people puts a ban like this, it could have a bad effect on the price development of the stock. Scrolling forward, European Union decided to ban the advertisement of cigarettes. And that finally made sense. When I travelled to certain countries, all boxes looked the same. You could not recognize which brand is on the shelf from distance. And if that is not enough, many countries are constantly raising the tax on cigarettes, as they want people to stop smoking and/or not even start.

So, I found out the one side of a coin. Now off to the second one, I thought. Phillip Morris, despite all the bans and “sanctions” on tobacco products, they just don’t give up. They have invented a heating stick, called IQOS, which only “heats” and not burns the tobacco. It was a huge success for the company. Then they found out the trend was vaping, so they invented some kind of a vape, however that was not as successful. But marketing did a really good job and attracted many people to start smoking IQOS. It seems that company will bet more and more on their heating products, as war on cigarettes keeps improving. After I read all the important news, I went to check the charts again. The price of a stock in the beginning of the year was exactly the same as the one at the time of performing this technical analysis. The price currently is at 100,38 USD for a stock. Meanwhile, as I noticed volatility, it was not that bad as it seemed. At least this year. The highest price reached this year was 105 USD, while the lowest was 98,51.* After all the gathered info, I decided to short a stock for some time now and then decide to either long it or leave it at short. However, it is a stock that I need to keep my eyes on.

Obrázok1

* Past performance is no guarantee of future results

Link to 5 year chart: https://www.investing.com/equities/philip-morris-intl

Date: 24.4.2024
Riding the AI Wave: My Investment Journey with Nvidia and AMD

As an investor continually scanning the horizon for promising trends, the recent explosion in demand for AI chips caught my attention. Observing the soaring performances of Nvidia and AMD, companies at the forefront of AI technology, I was intrigued. This wasn't just about a temporary spike, it reflected the transformative power AI is beginning to wield across various sectors. My decision to increase my stakes in these companies was driven by a belief in the sustainable growth of AI technology and its increasing integration into everyday business and consumer products.

Date: 17.4.2024
Positive Perspectives from LVMH's Latest Quarterly Earnings

Today, after reviewing LVMH's first quarter earnings report, I was reassured about its investment strategy, particularly in the luxury goods sector. Despite the global, economic slowdown that has clearly affected the luxury goods market, LVMH - home to prestigious brands such as Louis Vuitton and Dior - has demonstrated its resilience and ability to adapt to changing market dynamics. This is key for me as an investor seeking stability in these turbulent times.

Date: 10.4.2024
Microsoft and NetEase Ink Game-Changing Deal

As an investor deeply entrenched in the tech and gaming sectors, the recent news of Microsoft Corporation's (NASDAQ: MSFT) Blizzard Entertainment renewing its partnership with China's NetEase Inc (NASDAQ: NTES) has sparked a notable upturn in my investment outlook.

Date: 3.4.2024
TSMC and the aftermath of the earthquake in Taiwan

The current seismic events in Taiwan have cast a shadow over my portfolio, especially with regard to my stake in Taiwan Semiconductor Manufacturing Corp (TSM). A devastating magnitude 7.5 earthquake, the strongest since 1999, struck the island country early Wednesday morning, leading to widespread power outages, property damage and disruption of subway services in major cities including Taipei.

Date: 27.3.2024
Anticipating Apple's AI Revolution

With the Apple Worldwide Developers Conference (WWDC) just around the corner, my attention is sharply focused on what could be a landmark event for Apple and the tech industry at large. Scheduled from June 10 to June 14, this year's WWDC promises to unveil advancements across Apple's entire product line-up, including iOS, macOS, watchOS, and the intriguing introduction of visionOS. However, the buzz around potential artificial intelligence (AI) integrations has particularly piqued my interest, signalling a possible strategic pivot for Apple in a domain that's increasingly dominating tech conversations.

Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81.75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.