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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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Chicken problem around the world

Date: 15.3.2023

I quickly jumped to the store in the morning to buy eggs for breakfast, and I was negatively surprised about their price. I understand that inflation and everything could push the price up, but 80% and more for the eggs compared to when I bought few months ago is a little too much. I decided to investigate the matter immediately.

It did not take long for me to find an article on Investing, where it was written that Tyson Foods is shutting down two US chicken plants with nearly 1700 workers. But I thought to myself ok, this could have impact in USA. But what is happening in the other parts of the world? A little more digging brought me to many articles reporting that the bird flu is on the rise again, and therefore they need to kill the diseased chickens. Now this made a lot of sense to me, as we are facing now the typical supply and demand scenario – there is the same or bigger demand for eggs, but there is much less supply, causing the prices of eggs to skyrocket. All of this reminded me of a TV series called Billions, where similar scenario was happening, but intentionally, as they tried to manipulate the market.

Reading forward through the articles, it became quite clear to me that inflation plus supply demand is causing these prices. I picked one random store, to check how they are doing lately. I decided to check Walmart, one of the biggest store chains in the world. Finviz provided me with very useful articles about the store in question. Despite the rise of price for eggs, Walmart decided to make Easter meals affordable, to satisfy every customer. I totally forgot that Easter is just around the corner. But this year it seems it will be in smaller size as last year. Back to Walmart, I thought that it is very clever idea to make baskets affordable, so people are not shortened for such big holiday. They are also launching their own online shopping platform, called Walmart+, which will allow customers to buy many products online, including groceries. Now that solves many hours walking around the store, I thought. Despite this good news, I also found one bad, however not that critical. Walmart closed both stores in Portland and left the city. I think I found enough for my fundamental analysis, so as always I moved to technical part.

For the last two years, the price of a stock was more or less stable, as it was moving between 120 USD and the highest 150 USD. Before that, in 2018, the price of a stock was at 83 USD. This means, that in few years the price of a stock rose for almost 100%. * Based on the chart, I also think that there is a strong support level on the mark of 121 USD. Based on the fundamental part that I have found, and technical analysis, I have decided to enter the trade and open a position of Walmart on long.

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Movement of Walmart stocks in the last five years. (Source: Investing) *

* Past performance is no guarantee of future results.

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.

Date: 20.3.2024
Anticipation of the Fed's decision on interest rates

For an investor who is intensely interested in developments in the US stock market, the weeks leading up to today's Federal Reserve meeting have been particularly interesting. Compared to last month, March has so far shown a slowdown in the performance of stock indices such as the S&P 500 or the NASDAQ 100. This entry reflects my thoughts and strategic considerations during this crucial period.

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