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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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The price of oil is lower

Date: 3.3.2023

As I went today to the gas station to fill up my car, I was surprised by how much the price of oil fell. Well, it is still not on the level that it was during Covid, as prices were the lowest in recent years, however, the price fell for at least 40% compared to the time when war in Ukraine started.* On the way home, I was thinking if the chart of oil will also be in downtrend, then. I sat behind the computer, opened the chart and saw that actually there was a falling trend. But I also noticed that right now the price is in a channel.

Since I had my chart open, I decided to do the technical analysis first. For the past two months, the price of crude oil is moving in the range between 89 USD per barrel and 78 USD per barrel.* Since the beginning of the year, oil started to form a nice channel. From that point of view, I have decided to open a position on short, however, short term period. At the time of writing this diary, the price for a barrel was 84,57 USD. I am predicting that it could fall to the lower line of the channel, to around 81,53 USD per barrel. Investing confirmed my suspicions, as their indicators show for very short-term strong sell, as well as for mid/long term.

I went to check for the actual news to perform the fundamental analysis. Next OPEC meeting will be in April, at least it is scheduled for then. But the last OPEC meeting that was held, did not bring any positive news for the price of oil. OPEC does not want to increase the production of barrels per day, meaning that there will be typical supply and demand scenario – low supply, high demand means higher prices. On one side it makes sense, that they want to cover for the losses during Covid, when the price of oil was negative, and since everything is turning to electric, they are probably trying to milk out as much as they can. But on the other hand, it is not good for us, consumers, as we will pay the higher price. But, oil is one of the most needed commodities, so they can afford to regulate the prices that way.

In conclusion, I opened the position on short. However, I will keep an eye on it as it can change the trend. Especially when the OPEC meeting will be closer, there I expect some volatility.

Oil

* Past performance is no guarantee of future results.

Link to a 5-year chart: https://tradingeconomics.com/commodity/crude-oil

Date: 1.5.2024
Guidance on Alphabet's strong Q1 results

Alphabet Inc.'s latest quarterly results have given me a lot to think about. The strong growth in Google Search, YouTube, and Cloud, highlighted by CEO Sundar Pichai, demonstrates the significant impact of artificial intelligence on the company's momentum. The reported 14% year-over-year revenue growth in Google services and a staggering 28% revenue growth in the Google Cloud segment underscore a thriving operating strategy.*

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.

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