Forum Topics The Strawman Classic
Barwonchick
Added 5 years ago

Thanks, Strawman & Think Markets competition was fun. Like Karl, I started Ok but failed miserably by flip-flopping. However, I did find some interesting company's that I have done more research on. IGO, Nickel Mines, Minotaur. DigitalX interesting find, but unsure If I really believe/understand business.

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Strawman
Added 5 years ago

Congratulations @MarkRicho.

$10,000 coming your way!

Thanks to all our contestants also. Hope it was a bit of fun.

We're looking at more contests next year, and will be tweaking some of the rules and systems to incorporate some member feedback. 

We're also getting close to releasing improved ranking and badges for better member recognition for the general platform, as well as a raft of quality of life improvements. 

Cheers!

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PICT
Added 5 years ago

Wish I had entered this now......

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Strawman
Added 5 years ago

Impressive returns PICT! Don't worry, we'll do more competitions next year..

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TBR77
Added 5 years ago

Not sure if this has been covered off already but searching didn't bring anything up. 

How does the competition handle companies in suspension that are most likely headed for delisting? Looking at EM1 here as an example - suspended for over half the competition. Are gains on those companies counted for the competition when there is a reasonable chance those investors will never be able to realise those profits? There are some pretty big gains floating around that are currently locked in and free of corrections etc that might remain just long enough for the competition but then head to effectively zero a week later. 

 

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Strawman
Added 5 years ago

Hi TBT77, suspended companies will not deliver any returns for the competition, and in fact will act as a drag on overall portfolio returns in the same way as cash does. When a price is finally determined (eg if it confirmed to be delisted at zero value) we will update at that time.

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Bear77
Added 5 years ago

Will that be due to manual adjustments made when the competition ends Strawman? Because currently suspended companies are shown in Strawman.com members' portfolios at their last traded price, so if a company has doubled their share price to 50c/share since being purchased at 25c/share, and is then suspended, Strawman.com is still showing that position as being worth 50c/share despite the suspension. An example of this is ISX (iSignThis) which has been suspended since last year and is still shown as being worth $1.07/share in members' portfolios. If it ever trades again, it would likely be closer to 7c/share, but probably less. The most likely outcome is actually that they will never trade again on the ASX and will try to list on the NSX instead. My question therefore is how will you account for that? Manually adjust all suspended companies' share prices to zero, or remove those positions from portfolios at cost? Another query that has popped up a couple of times is regarding members who have managed to build up large positions in companies, such as AfterPay or Andromeda Metals. Some members held over $50,000 worth of these companies before the competition began. ADN for instance was 13c on October 19th, and is now 24c (almost double) after hitting a high of 33.5c on 23-Nov and an intra-day high of 36.5 cps (on the same day). In the case of APT, their SP is actually a couple of dollars (2-3%) lower than they were at the start of the competition, so no advantage there in reality, however the point was that the playing field wasn't level because members who have been with the platform for a while have been able to build up positions well in excess of 20% in some companies by the time the comp began, and new members had that 20% cap imposed on them (as all of us did of course - that rule wasn't new - but the practical affect was that longer term members had the advantage of having had the ability to build up larger positions via capital growth and dividend reinvestment, i.e. compounding, the 8th wonder of the world). Some members have suggested that adjustments would be made for those people who had positions in individual companies that were larger than 20% of their entire portfolio at the start of the competition. Is that indeed the case? I also read a comment from yourself along the lines that having a larger than 20% position in companies could provide more risk than reward - implying that it was a swings and roundabouts scenario, i.e. that the advantages and disadvantages could possibly be pretty evenly matched. I just think that this stuff should be clearly explained in advance rather than have people go "WTF??!!" when it's announced at the end of the comp. Finally, I assume, and please correct me if I'm wrong, that adjustments such as those I have just discussed above, would be made purely for the purposes of calculating the adjusted percentage gain that each member achieves over the life of the comp, and would NOT be permanent adjustments to portfolios that affect those members AFTER the comp has finished?

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Strawman
Added 5 years ago

Hi Bear77, The comp only tracks returns over the competition period. So for ISX, for example, there'd be no change and hence a zero rate of return. If a company is suspended during the comp, that'd be different and we'd manually adjust if the winner has benefitted from something like that. For those that entered the comp with higher weightings, we haven't made any adjustments but it seems this won't be an issue anyway looking at the leaderboard as it currently stands. As we've said, if there's anything really unfair, we have the discretion to make adjustments. (As we did with 0.1c stock flipping) Given the nature of the prize -- winner takes all -- we won't bother reviewing and adjusting every user portfolio. Also, no adjustments would be permanent for the regular portfolios. A few learnings from this first competition. Will do things a bit differently next time.

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Bear77
Added 5 years ago

Thanks Strawman. That's all clear and makes sense.

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