Joe Duffy's Diary : March 20, 2001
10:55 am - I setup an account on golfinvestors.com by going to
the "Open an Account" page.
During registration, I am able to choose the id and password for my account,
along with my profile information. I will be able to use my id and password
to access my account on GI at any time. Open an account is free. Playing the
GI game is free.
Once I setup my account, I am taken to the My Account -
Main Page, where I see there are 2 active markets:
For the 2001 PGA Season Market,
my net asset value shows $500,000 and I rank 245 out of 450 active investors.
For the Test Stock Market, my
net asset value show $1,000,000 and I rank 198 out of 432 active investors.
11:05 am - I click on the link of my $500,000 net asset value
for the 2001 PGA Season Market. This takes me to the My
Account - Portfolio page where I can see the details of my portfolio for
this market. Since I am new to the system, I have all cash in my account and
not one share of stock of a golfer. Nor do I have any liabilities. $500,000
is the amount of cash I start out with in the 2001 PGA Season Market. I double
check this by going to the detail
information page of the market in the Markets section.
On the detail information of the 2001 PGA Season Market I also find out when
the market is open (days of the week, time market opens each day, time the market
closes each day, the day the market started, the day the market will finish),
along with margin levels, starting cash level, and commission structure.
The 2001 PGA Season Market started on January 1, 2001 and will finish on December
31, 2001. So the market has been going for almost 3 months before I opened an
account today. The starting cash level for the market is $500,000. There are
10 players traded on the market. There have been 2,890,854 shares traded over
the life of the market to date. The commission structure is 5% ( from 1 to 1,000
shares ), 4% ( from 1,001 to 2,500 shares ), 3% ( from 2,501 to 5,000 shares
) ; 2% ( from 5,001 to 10,000 shares ) ; 1% ( greater than 10,001 shares ).
The commission structure seems a little expensive So I need to watch this.
It might prohibit me from making certain trades.
Now back to My Account - Portfolio screen.
I need to buy some players I like to make this game interesting.
However, before I can trade anyone, I need to do research on Uresti and Els
to see what they are trading at. I don't want to buy Uresti or Els at a price
which is expensive.
So I go to the My Account - Quotes section
and select the 2001 PGA Season Market from the pull-down menu, as the 2001 PGA
Season Market seems to be the market to trade on. The Test Stock Market seems
to be just a test market. I am ready to trade in the real market now.
Since I don't know the stock ticker symbol of either Uresti or Els, I click
on the "Find Symbol"
link. This brings up a pull-down menu with a lot of players in the list. I find
Uresti and click on his name in the pull-down menu menu. This brings up his
stock ticker symbol, which is: OMURI.
I then press the "Get Quote" button.
The following message comes up: "Player OMURI is not traded on any
of the markets."
The results show Uresti is not traded on any GI markets. Awwwwwwwwwh
shucks. I wanted to trade Uresti. No problem. I will just recommend to the GI
Admin in the future to have Uresti do an offering on one of the GI markets.
Now I can view Uresti's profile information
in the Players section even though he is not traded at this moment on GI markets.
I will keep my open in the future to see if he does an offering on any of the
GI markets. So I continue reviewing more articles on Uresti and view pictures
of him playing different round in his Picture Gallery.
11:15 am - Now on to my 2nd favorite player, Ernie Els.
I go back the My Account - Quotes page and
I repeat the same steps on the Quote page as I did with Uresti. This time I
find that Els' stock ticker symbol is ERELS.
So then again I click on the "Get
Quote" button. This time I have successful results.
I find out that Els is traded on the 2001 PGA Season Market. I see on this
page that Els has a stock ticker symbol: ERELS, not the words "[ Not Trade
]". This means he is traded on at least one GI market. So I review Els'
earnings to date, his rankings on the money list, and who his sponsors are.
Just like I did with Uresti. Then I review articles Els was mentioned in, his
overall stats, the results in the tournaments he has played in. And then I review
the offerings
Els has made on GI markets, Charts
of his price per share, Analyst
Reports written about Els' stock, and his Financial
Info.
I find out that Els is traded on the 2001
PGA Season Market. His last price is $15 per share. The closest bid price
is $14 per share. The closest ask price is $16 per share. I see he has 100,000
shares outstanding. With a per share price of $15, his market capitalization
is $1,500,000.
His earnings used for the earnings calculations of the 2001
PGA Season Market (which is for the official PGA tournaments during 2001)
are $500,000. With 100,000 shares outstanding, Els' earning per share (EPS)
is $5. And with his $15 per share price, his Price/Earnings ratio is 3.
So is Els' stock price expensive or cheap? It depends on a lot of factors.
I ask myself the following questions:
- How many tournaments are left to play before the market closes?
- How many of those tournaments will Els play in?
- What is Els' average earnings over the last couple of years during the same
period of the 2001 PGA Season Market? In the case of the 2001 PGA Season Market,
what did Els earn in official PGA tournaments in 2000, 1999, and 1998?
- How much money has he earned in the tournaments he has played in this year?
- How well is he playing now?
- How is his health?
- In what part of the year does he normally peak in years past?
- Which tournaments does he play well in?
With this information, you then need to look at his current market capitalization,
money he has earned to date, and what you think he will earn from the rest of
the tournaments this year.
|
Market Cap
|
|
Total Estimated Earnings for the Year
|
|
$1,500,000
|
<
|
$2,500,000 =
|
Earnings to Date
|
My Estimated Earnings Els will Earn the Rest
of the Year
|
|
$500,000 +
|
$2,000,000
|
|
Since the Market Cap is less than the Total Estimate I have, then it means
the price is inexpensive. So I want to buy.
I like Els' price. It looks inexpensive to me. But I hold off from purchasing
Els' stock today. I want to think it over a little bit and watch what other
GI investors are doing on the market.
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