Article
A few weeks ago The Capitalist launched a 'regular' stock market review. Fortunately enough I didn't explicitly state my intention to make it weekly. Real life events have kept me busy since that, however I've got the spreadsheets and finally had the time to update them, so here's the news.
For this new edition I have applied a few changes. It is still the same data processed, however due to the astonishingly low liquidity of stock markets, I gave up on trying to base my evaluations on total profits calculated from the change in share price and divident yield.
So here's the legend for the new tables: PRICE signals the current share price, aka the latest actual transaction as of day 218; CHANGE is the difference between that and the price on day 178 (both in Gold). EPS is the conventional figure used in real life stock evaluations, Earning Per Share, also in Gold. It signals the earnings (raise/decrease in estimated value plus dividents paid) divided by number of shares. Practically that indicates the profitability of a given company, although it does not take total capital in consideration.
P/E aka Price per Earnings is another indicator used in real life, and shows you the ratio between share price and the earnings of the company. Practically it tells us how much investors are willing to pay for potential earnings. E.g. a figure of 16.2 means that share price is 16.2 times the earnings made in the evaluated period, a figure of 5.1 shows share price is 5.1 times the earnings. Basically, the smaller the number the more profitable the share is. Unless it turns to negative of course, a negative value indicates the company is turning out a loss, and in that case the larger the number the smaller the loss per share is. Note that a fall in value is not necessarily a bad thing, it can actually mean the CEO decided to rationalize the company portfolio and has paid the excess capital in dividents. It might signal poor management though if working capital is used to turn out extravagant dividents unsupported by profits.
DY% signals the 30-day divident yield as a percentage of share price. It is based on the whole 40 day evaluation period, however it is calculated as a 30-day average (making it comparable with future reviews). P/EV is a special e-Sim indicator, Price per Estimated Value, what could be translated to share price per book value in real life. It signals the market capitalization of the company, e.g. a figure of 3.96 shows that share price is 3.96 times the estimated value per share, meaning that investors are willing to pay that many times the actual estimated value their shares represent.
Finally, RATING is a simple piece of advice on what to do with those shares. Note that rating might not only be based on published performance indicators, but take various other things into consideration. E.g. Jebheye Melli is struggling along without a CEO for 11 days now, thus even with its decent divident history and serious undercapitalization its future looks rather grim.
As before, my pickings are to some extent arbitrary, however I tried to consider both total assets and the volume of shares traded. If you want to have your stock market company listed and evaluated, contact me in an in-game message. Sponsored pickings cost 0.005 Gold per subscriber.
Previous article:
Stock Market Review (Day 179) (11 years ago)
Next article:
Stock Market Review (Day 225) (11 years ago)
About the game:
USA as a world power? In E-Sim it is possible!
In E-Sim we have a huge, living world, which is a mirror copy of the Earth. Well, maybe not completely mirrored, because the balance of power in this virtual world looks a bit different than in real life. In E-Sim, USA does not have to be a world superpower, It can be efficiently managed as a much smaller country that has entrepreneurial citizens that support it's foundation. Everything depends on the players themselves and how they decide to shape the political map of the game.
Work for the good of your country and see it rise to an empire.
Activities in this game are divided into several modules. First is the economy as a citizen in a country of your choice you must work to earn money, which you will get to spend for example, on food or purchase of weapons which are critical for your progress as a fighter. You will work in either private companies which are owned by players or government companies which are owned by the state. After progressing in the game you will finally get the opportunity to set up your own business and hire other players. If it prospers, we can even change it into a joint-stock company and enter the stock market and get even more money in this way.
In E-Sim, international wars are nothing out of the ordinary.
Become an influential politician.
The second module is a politics. Just like in real life politics in E-Sim are an extremely powerful tool that can be used for your own purposes. From time to time there are elections in the game in which you will not only vote, but also have the ability to run for the head of the party you're in. You can also apply for congress, where once elected you will be given the right to vote on laws proposed by your fellow congress members or your president and propose laws yourself. Voting on laws is important for your country as it can shape the lives of those around you. You can also try to become the head of a given party, and even take part in presidential elections and decide on the shape of the foreign policy of a given state (for example, who to declare war on). Career in politics is obviously not easy and in order to succeed in it, you have to have a good plan and compete for the votes of voters.
You can go bankrupt or become a rich man while playing the stock market.
The international war.
The last and probably the most important module is military. In E-Sim, countries are constantly fighting each other for control over territories which in return grant them access to more valuable raw materials. For this purpose, they form alliances, they fight international wars, but they also have to deal with, for example, uprisings in conquered countries or civil wars, which may explode on their territory. You can also take part in these clashes, although you are also given the opportunity to lead a life as a pacifist who focuses on other activities in the game (for example, running a successful newspaper or selling products).
At the auction you can sell or buy your dream inventory.
E-Sim is a unique browser game. It's creators ensured realistic representation of the mechanisms present in the real world and gave all power to the players who shape the image of the virtual Earth according to their own. So come and join them and help your country achieve its full potential.
Invest, produce and sell - be an entrepreneur in E-Sim.
Take part in numerous events for the E-Sim community.
