The rule works proactively. When trying to buy over 30%, the trade is blocked. When they implemented the rule, Brian said if you already had a larger position, they would not liquidate it. However, I think they target large positions first in margin calls.
Furthering what Delta had said. I am wondering about the 30% diversification rule, which is that people on the SE are not allowed to have more than 30% of their net worth in 1 stock. Is this applied proactively so that the SE will not allow them to buy more once they reach 30% OR is this applied retroactively so that after they have over 30% the SE will automatically start selling their shares to bring them down to 30%? I think its probably proactive, but throwing this out there because its another possibility as to why huge stocks might see drastic drops a day or two after their IPO.
Both stocks are down. Remember, one of the downward forces on the simExchange is selling as a result of margin calls. A lot of times, people over extend themselves on the IPO, hoping to make a quick buck.
This certainly happened with GTA IV (Xbox 360) as the stock was up like 10% yesterday. Part of the selling was profit taking, part of it was the people who had bought so much and boosted the stock price up so high, they were over extended and had to sell. Some people may have bought into the PS3 version's IPO hoping for a quick pop and didn't get it. They then sold to get their money back to play another IPO.
I personally don't think the IPO play has been workable since the Spore IPO last year (before the current IPO system was in place).
Sorry to interrupt your heated argument, but how is it possible for this stock to be declining? Is someone seriously selling at a negative, or is there some other factor at play?
Agreed. Although the release of GTA 4 will push sales of the PS3 in North America and Europe, it seems highly unlikely that the user base will be able to support sales of this magnitude any time in the near future.
I would hasten a guess that it will take as long as late early 2009 at the earliest for it to even be possible.
GTA sales were basically the same for Vice City and San Andreas (combing PS2 and XB sales) at about 16.5 million. Those were with a combined install base of roughly 135 million consoles.
Right now these two stocks are priced at a combined 14 million plus with an install base of 13 million (with another 7 months of console sales to go, but that's not gonna lead to 120 million PS3s and 360s sold). Even the simexchange predicted lifetime totals for those consoles (both overpriced IMO) only come to just over 100 million.
These stocks are overpriced considering that the install base simply doesn't exist for them.
Personally I think that both versions of this stock are still undervalued and that they have some room to grow. These are probably ATM some of the best stocks to invest in based on the amount of volume moving through them in the last couple days, opening day they collectively moved 12 million DKP into them, and today another 4 million DKP went into them. This franchise is still a strong franchise and is almost certainly going to sell well on both systems.
fanatics? personally im lost at what youre getting at with this percentage thing so im giving up on understanding actually arguing im just going to continue my climb to the top.
I didn't say 1-5% beat GTA I said that maybe 1-5% are the fanatics that would HAVE to get every version. YOU are the one that brought that up and I am mearly saying that the number of people that are like that are very few and not likely to highly affect the total sales #s.
I also said that 1-5% was out of my ass and not verifiable number...just like your position that there are 'lots' of people like this is non verifiable.
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