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Helpful suggestions for mikedrud...

Last post on Aug 19, 2008 at 6:31 PM

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#1 of 1 Helpful suggestions for mikedrud... by pmc4

Aug 19, 2008 (6:31 pm)

1. Play the part of the underwriter of the security and set the IPO price as the underwriting institution would for a company that's ready to trade on a major exchange. This can be done by comparing the overall sentiment of the car (*defined below) against a metric, such as current car stock price on the CSX exchange. This means that you'd want to set the IPO price of the Acura TL pretty high--say, $55.00, and the IPO price of the Nissan Cube pretty low--say, $35.00, because Acura TL's generally have a more favorable sentiment than dubious, boxy new product offerings from Nissan (*car sentiment can be data gathered by Edmunds, Consumer Reports and the automotive press that relates to the 'favorability' of the car and it's manufacturer. A Honda Accord, for example, would have much greater sentiment than a Dodge Sebring, because the press has a much favorable outlook on the Honda than on the Sebring, even though the Sebring would be the better overall value. For this reason, you'd want to set an Accord IPO price pretty high, and a Sebring IPO price pretty low, if you were to IPO these two cars).
Doing this will avoid the troublemakers who, on IPO day, will get in on a great price on the IPO by repeatedly pressing the 'refresh' button on their computers.
 
2. There must be a BID and an ASK price for the underlying CSX security. It would be no great matter for BID and ASK to be quickly defined in the 'help' section of the CSX Home Screen. By having a BID/ASK spread, you as manager can better direct CSX stock price, and afford us with more information so that we can make a wise, informed investment decision.
 
3. Volume data must be shown along with price, so that limited technical analysis can be done on the CSX security. Offering us the opportunity to do some limited technical analysis will enhance the game for everyone, and encourage daily trading activity by the CSX participants.
Show both volume and price on the charting software.
 
4. Probably the most important change that has to be made: Find a way to make the price of the security fluctuate with the number of units sold. In other words, if breaking news is released showing the Toyota Corolla is selling 250,000 units instead of the predicted 200,000 units (news from Toyota's press releases that can be found in their SEC form 8K, for example), then a system has to be found that will immediately reflect this breaking news in the price of the CSX security.
If it is found that Toyota is going to outperform in selling the Corolla, then change the BID/ASK spread to make it easier to buy or cover a short sale, but harder and more damaging to sell or sell short the Corolla CSX security.
This is what happens in the financial markets: Good news on a company causes both the BID and ASK to skyrocket upwards, which induces buying.
The only way you can do this (it's the only way I can see) is to change the "$1.00 to 1,000 units" parameter. Raise the parameter ($1 to 500 units) if a car company (Toyota in this instance) issues better-than-expected sales, and lower the parameter ($1 to 2,000 units) if the car company dissapoints.
 
Or, you can keep doing what you have been doing and see this CSX idea sink faster than an Edsel-carrying Titanic...

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