Can you identify a company with downside potential over the next month and rank highly in the Monthly Sell Call Competition? Having a good idea of when a stock is poised for downside is a valuable tool to have as it enables you to think critically. This may be because you think a company needs to raise fresh equity, because technical analysis suggests downside, or for any other reason. This competition allows you to put your sell calls to the test against other investors!
This competition will be split into two sections; a monthly component where you enter a company each month and results are released at the end of the month The second part is a cumulative component whereby your 'points score' will be added up over time in an overall player leaderboard alongside other performance ratios. The Competitions tab has now been updated, and this is where you can find the link to this new competition's monthly leaderboard. This will be fully updated once the competition begins.
The company you choose does NOT need to be short-able in real life. The primary purpose of the competition is academic and to help you refine your ability to recognise companies with downside potential.
This competition requires you to pick the company that you think will see the greatest share price depreciation over the course of March 2015. The entry deadline for March's competition is 16:35 on Tuesday 3rd March, and the competition runs until 16:35 on Tuesday 31st March.
To enter you need to submit both a Display Name and your company of choice either by:
- Emailing your entry to email@example.com,
- or using the site's contact form to submit your entry,
- or tweeting your entry to @theel1tetrader. Your twitter username will be the display name for the competition
- For an entry to be valid, it must be received by the relevant deadline as stated on the Competitions page
- The Display Name may either be your real name or a pseudonym
- Price depreciation will be the method of comparison
- The scoring system is points-based dependent upon your position. It follows as below:
- Zero points if the company share price appreciated over the month, otherwise:
- The company you choose does NOT need to be short-able in real life. The primary purpose of the competition is academic and to help you refine your ability to recognise companies with downside potential
- The Bid Price will be used for the start price; the Ask Price will be used the final end-of-month price. Where it is possible to purchase within the defined spread, the last trade price will be used where appropriate
- The table is automatically updated every few minutes using Google Finance to provide quotes. However, Google Finance provides the price of the last trade, hence for illiquid stocks the shown price may deviate significantly from the mid-price. However, at the end of the month, I will manually enter the most appropriate price to ensure no actual disadvantage
- There are no prizes aside from the kudos of outperforming peers!
- Should a share be suspended or delisted, an appropriate method of valuation for the shares will be used to be determined at my discretion. If a company is taken over or merges with another company for cash, the cash value per share will be the final price. If taken over for equity, the cash equivalent of the equity will be used for the final price, as appropriate.
- You cannot choose a company currently suspended
- Company choices must be unique, so choices already entered into the table cannot be chosen in another entry
- If a company undertakes a stock split or rights issue, the share price will be adjusted for appropriately