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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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Rheinmetall and their new tank factory

Date: 6.3.2023

My morning market research was interrupted with rather interesting news I found – Rheinmetall, German weapons producer, wants to open a new tank factory right in Ukraine. Company even stated, that by doing so, Ukraine would get tanks that they need faster. The country in question asked for additional 600 – 800 tanks, so from this point of view I can understand why Rheinmetall decided for this move. And there is also another factor that I realised – Ukraine has much lower standard prices, which would save Rheinmetall much money and give job vacancies to Ukrainians. Both sides win it seems. Which was not the case when the war started.

Rheinmetall’s stocks have experienced enormous growth in the last year, since the start of invasion of Ukraine. Right before the attack, the price of a stock was at around 94 euros. Today, the price of one Rheinmetall’s stock is 255.70 euros. Quick math, almost 300% growth in just one year. And given the demand for weapons by Ukraine, and of course other countries, I don’t see the growth in their price slowing down or falling. Quite opposite, the bigger the demand will be, more I expect the price of it to grow. But I thought to myself that I will approach the trade with caution, as the price is currently at their highest in history. In fact, at only 2 occasions in 2018 the value of stock broke the barrier of 100 euros, however, before and after that the price was always below. So, as good as it sounds that the price is constantly rising, this can take an opposite turn quite quickly. After checking the chart, I went to check the article more detailed.

The article said that German defence contractor Rheinmetall is in talks to build a tank factory in Ukraine. The factory, which could be set up for around €200m, could produce up to 400 of Rheinmetall's latest battle tanks models, the Panthers. Ukraine currently lacks the equipment to fully retake its territory and requires around 600 to 800 tanks. Rheinmetall produces the Leopard tanks that Germany has sent to Ukraine. The company will join Germany's DAX index this month due to increased defence spending resulting from the war in Ukraine. Now this is very important information for any investor. Company joining one of the strongest indices in the world? For sure a good signal. After considering all the gathered information, I have decided to open position on long, however, will keep an eye on it.

Rheinmetall

*

* Past performance is no guarantee of future results.

Link to 5 year chart: https://www.investing.com/equities/rheinmetall

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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