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Trader's Diary

Economic calendar

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Definición de términos:
Ganancias

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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OPV

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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Caterpillar looks interesting amid earthquakes

Fecha: 15.2.2023

I woke up in the morning, made coffee and checked the news. It saddened me to see more reported victims of earthquakes in Türkiye and Syria. Even though I am feeling sorry for them, as investor or trader, I need to put my feelings and emotions aside. It is a sad reality, that in unfortunate events, market offers us great opportunities. I checked back, it was the same when war started, hurricanes in USA, Covid, and many others. Now we have another unfortunate event – earthquakes. And I thought to myself, buildings being demolished will hit hard insurance companies, however, the companies that could make profit are construction firms. And I questioned, which is one of the biggest companies in the world, providing vehicles and machinery for construction workers? Caterpillar.

I quickly opened the chart and checked what is the status of the stock. Despite the price being rather high, at 244 USD, the stock is after correction, which was pretty solid at 10%.* It also seems that the current price hit the support line, as it bounced back a few times and never crossed it. Now, if I would be conservative trader, I would wait to see whether the price will break the support line, or it will once again return back up. But since I have experience in fundamental and technical analysis, I thought to myself – earthquakes are happening now. If I will wait too long, it might be too late. I made a quick decision and decided to buy the stock immediately when US market opens up, since the stock is listed on the New York Stock Exchange.

Having the time until opening, I decided to check any other interesting news about the company itself. One of the best sites to do so, (for companies on US stock exchanges) is Finviz. I went to make another cup of coffee and jumped right into research. I opened the site, typed “Caterpillar” into search bar and clicked enter. Immediately, the first positive thing I noticed was P/E ratio (price-to-earnings). The lower it is, the better. Forward P/E for them is around 14. Which means that it will make a return on investment much earlier than the companies with higher P/E. At least in theory, markets work in a funny way sometimes. I scrolled down to the news section, and an article immediately caught my eye. The name was “Investors heavily search Caterpillar Inc.” on Zach’s. It just confirmed my speculation, that this is no-brainer at this time. Another article said that it is also one of the good stocks to buy for dividends. So, I shall not wait longer, and make a buy order immediately when US market opens.

Obrázok1

* Past performance is no guarantee of future results.

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

Advertencia de riesgo: Los CFD son instrumentos complejos y conllevan un riesgo elevado de perder dinero rápidamente debido al apalancamiento. El 81.75% % de las cuentas de inversores minoristas pierden dinero en la negociación de CFD con este proveedor Debe considerar si comprende el funcionamiento de los CFD y si puede permitirse asumir un riesgo elevado de perder su dinero.