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Zarek Kree
Lunatic Legion Holdings
84
|
Posted - 2017.03.29 20:11:38 -
[1] - Quote
What you have is an economic conspiracy theory that isn't rooted in any kind of actual economic theory (except for possibly some weird behavioral economics). Had there been a massive sell-off, you might have convinced me, but massive BUYING? Yeah, no.
Somebody please connect the dots and explain to me how insider trading led to an INCREASE in plex prices when all indications point to MORE plex entering the market based on this decision, because the economic logic escapes me. |

Zarek Kree
Lunatic Legion Holdings
84
|
Posted - 2017.03.29 20:47:23 -
[2] - Quote
Salvos Rhoska wrote:Zarek Kree wrote:Somebody please connect the dots and explain to me how insider trading led to an INCREASE in plex prices when all indications point to MORE plex entering the market based on this decision, because the economic logic escapes me. Pending division of PLEX into 500 units, its a good time to buy them up now, before the change. Afterwards its far easier to trade PLEX as x/500 units, rather than in 500 unit blocks as equivalent to now.
What you're describing makes absolutely no economic sense because 1 PLEX today will be exactly the same as those 500 PLEX following the change. In fact, it will be worth LESS because of the additional PLEX getting dumped into the market from the aurum conversions.
However, I mentioned behavioral economics as a possible explanation because it describes non-rational economic decision-making. Your theory isn't true in any kind of classical economic sense, but the fact that you THINK it's true can drive you to buy PLEX despite that being completely irrational.
But still, the smart money dumps it - and insider trading is always built around smart money plays. So if anybody DID have advance notice of the announcement, they got burned because they dumped their ISK. They certainly didn't buy more of it. |

Zarek Kree
Lunatic Legion Holdings
84
|
Posted - 2017.03.29 20:50:17 -
[3] - Quote
Salvos Rhoska wrote:xXdongbenderXx wrote:Is now a good time to buy plex in its current form i'm looking to sell to the market in order to get started.... With isk? Buy now as fast as you can. With cash, wait. Its only going to go up. I estimate 1.5-1.8 by the autumn. Maybe even 2bil.
Please tell me you're trolling. Given some of the ridiculous things said in this thread so far, it's really hard to tell. |

Zarek Kree
Lunatic Legion Holdings
97
|
Posted - 2017.03.30 14:46:11 -
[4] - Quote
Teckos Pech wrote:Because they are dumping Aurum as a form of currency and allowing PLEX to be sub-divided and for these sub-divided PLEX to take the place of Aurum there will be increase demand for the new sub-divided PLEX.
That's a legit point. The demand for Aurum will be shifted to PLEX, which will put some upward pressure on the price over the long term. However, I'd argue that such pressure will be entirely offset by the introduction of the PLEX Vault which should almost entirely eliminate PLEX losses through ganking because it eliminates the need to manually move PLEX in-game. So the supply is also increased over the long term because PLEX will no longer be getting blown up and wasted. |

Zarek Kree
Lunatic Legion Holdings
97
|
Posted - 2017.03.30 15:11:03 -
[5] - Quote
Salvos Rhoska wrote:Zarek Kree wrote: However, I'd argue that such pressure will be entirely offset by the introduction of the PLEX Vault which should almost entirely eliminate PLEX losses through ganking because it eliminates the need to manually move PLEX in-game. There is no need, whatsoever, to manually move PLEX in-game.
That's not entirely true. There's no need to move it If people are buying and selling it for their personal use. But if you're buying and selling it speculatively, then you have to manually move it from low value stations to high value stations. It's no different than any other commodity in that regard. PLEX traders have no choice but to load it onto a ship and move it. That's why people do it and why it's so frequently blown up in space.
But, the PLEX Vault will eliminate that because all PLEX will reside there and will be accessible from any station. So even high volume speculative PLEX traders will be able to take it from one market to another without risk. Then there TRULY won't be any reason whatsoever to manually move PLEX in-game.
PLEX currently gets blown up everyday, thus reducing the supply and putting upward pressure on the price. The PLEX Vault reverses that pressure. |

Zarek Kree
Lunatic Legion Holdings
97
|
Posted - 2017.03.30 17:29:06 -
[6] - Quote
Nicolai Serkanner wrote:It just did... there is a discount the next few days.
CCP routinely runs discounts - and frequently much greater than the current 15%. Those discounts are one of the ways CCP controls the in-game exchange rate ensuring that it stays relatively flat. The recent spike may very well be why they put it on sale. A discount leads to people buying it, which increases supply, lowers in-game demand and reduces the exchange rate. |

Zarek Kree
Lunatic Legion Holdings
98
|
Posted - 2017.03.30 17:57:28 -
[7] - Quote
Teckos Pech wrote:My view is that I'm not entirely sure the increased demand for PLEX is going to matter that much in the end. Up until now people would buy Aurum, soon they'll switch over to PLEX, so the increased demand should be offset by increased supply. Of course, there is something going on in markets that allows for asset price bubbles--i.e. when the price of some asset becomes uncoupled from that assets intrinsic value. For example, experimental economics shows that in an experiment where there is an asset that pays out a dividend of $0.24/period and the experiment runs for 9 periods and participants are given various amounts of "cash" and the asset. The initial price of the asset should be $3.60, and it's price should fall from that initial value by $0.24 every turn. In fact, classical/rational expectations indicates there should be no trading at all really. After all, the price of the asset is going to be exactly equal to it's dividend payouts from that point forward (discounting is ignored as it is only 9 periods and there is not much time between periods). Yet in experiments the assets are often traded a prices well below their intrinsic value, then the price rises and overshoots it's intrinsic value at the time, and eventually crashes well before the 15th period--i.e. there is an asset bubble even when there is no uncertainty.
That's an interesting experiment. The pattern actually describes a classic bubble pretty well. The difference is that most bubbles are associated with uncertainty. The fact that it can happen under conditions of complete certainty almost sounds like the Greater Fool Theory in which rational buyers purchase items well above their intrinsic value in the belief that somebody else will be even more "foolish" than them and pay an even greater value.
Of course it's all rooted in behavioral economics/finance. People aren't rational - especially in a game in which they have much greater risk tolerance. That's why economics is a social science and not a hard science. If I'm not mistaken, CCP keeps a trained economist on the payroll to help them navigate these issues. |

Zarek Kree
Lunatic Legion Holdings
98
|
Posted - 2017.03.30 18:02:27 -
[8] - Quote
Xenuria wrote:Oh Look! It's this thread again...
Nobody on the CSM did any kind of insider trading. If they did I would be shouting it from the highest mountain tops for all to hear.
I wish I could like this post more than once. Conspiracy theorists are going to believe what they want to believe, but I still appreciate hearing CSM members openly dispute such nonsense. |

Zarek Kree
Lunatic Legion Holdings
98
|
Posted - 2017.03.30 18:52:43 -
[9] - Quote
Teckos Pech wrote:CCP DrEyjo no longer works for/with CCP. He accepted the position of rector at H+ísk+¦linn +í Akureyri back in 2014.
That's disappointing to hear. I always thought having a trained economic adviser on the development team was cool. Though CCP Quant certainly does some great economic data analysis. |

Zarek Kree
Lunatic Legion Holdings
100
|
Posted - 2017.03.31 00:57:56 -
[10] - Quote
Veine Miromme wrote:The same goes for weapons and ships. The less PLEX they have & more liability , the less power of defense they'll have for their citadel homes.
& this also goes for their moral opportunities.
There are powers that be who know when the oppressed are unfairly denied.
Take away their ships, weapons and ability to defend themselves, in equal values, and they will lose credibility and the power to protect the value of those assets, credit and so on.
Okay, fine. I'll bite...WTF are you talking about dude? It's like you're running your posts through a random word generator. |

Zarek Kree
Lunatic Legion Holdings
102
|
Posted - 2017.03.31 19:36:25 -
[11] - Quote
Nicolai Serkanner wrote:Zarek Kree wrote:Nicolai Serkanner wrote:It just did... there is a discount the next few days.
CCP routinely runs discounts - and frequently much greater than the current 15%. Those discounts are one of the ways CCP controls the in-game exchange rate ensuring that it stays relatively flat. The recent spike may very well be why they put it on sale. A discount leads to people buying it, which increases supply, lowers in-game demand and reduces the exchange rate. Bollocks.
Well, the only appropriate response to such a carefully considered and articulated assessment is to say "Does so, does so, does so!" |

Zarek Kree
Lunatic Legion Holdings
112
|
Posted - 2017.04.02 19:32:31 -
[12] - Quote
Teckos Pech wrote:Intelligent analysis
But, but...conspiracy! Leaks! Fake news! We all know that this is just a thin veneer of lies put forward by the intelligentsia to protect the game's elites who are scamming the system. As they say, there are lies, damn lies and then alternative facts. Stop trying to confuse us with unassailable logic. We know The Truth. It's completely unnecessary to articulate a logical argument supporting what we already know to be true. Next thing you know, you'll be telling us that the world isn't flat despite what we see with our own eyes.
/s
|

Zarek Kree
Lunatic Legion Holdings
118
|
Posted - 2017.04.03 16:10:45 -
[13] - Quote
Salvos Rhoska wrote:Whether insider info was leaked, or not, is the issue here.
The rapid spike is circumstantial unless it can be linked by evidence to that.
I think the timing and magnitude of the spike warrants some investigation, to see if insider info did prompt it.
Investigation complete. Spike was not due to insider info. Next topic. |

Zarek Kree
Lunatic Legion Holdings
118
|
Posted - 2017.04.03 17:37:27 -
[14] - Quote
How about 15 pages of analysis demonstrating that there is no logic or economic rationale for blaming the spike on insider trading? Have you even bothered to read even a portion of this thread or did you just skip to end?
Insider information would have resulted in a sell off of PLEX - not buying it up (logical argument). There was also no increase in trade volume that would have been necessary to move the market through insider trading (evidentiary argument). Can you refute any of that? Or is your argument simply "Price go up - bad man do it."?
What do you have in support of your theory? A simple causal explanation of any kind? Just connect the dots for me. |

Zarek Kree
Lunatic Legion Holdings
121
|
Posted - 2017.04.03 19:13:07 -
[15] - Quote
Girka Kring wrote:Zarek Kree wrote:How about 15 pages of analysis demonstrating that there is no logic or economic rationale for blaming the spike on insider trading? Have you even bothered to read even a portion of this thread or did you just skip to end?
Insider information would have resulted in a sell off of PLEX - not buying it up (logical argument). There was also no increase in trade volume that would have been necessary to move the market through insider trading (evidentiary argument). Can you refute any of that? Or is your argument simply "Price go up - bad man do it."?
What do you have in support of your theory? A simple causal explanation of any kind? Just connect the dots for me. Higher price, same volume means increased demand and reduced supply. Sad thing is that all those arguments were already answered among those 15 pages, and you didn't even bother to read it. You post sth that 50 other ppl already thoroughly discussed and state that the case is closed. The investigation should be conducted by real men (CCP) with necessary tools, knowledge and skills not some wannabe economics students. So please move on, unless you actually have sth meaningful to add here.
NONE of those arguments were answered. In fact, nobody even tried to refute them. DIDN'T. EVEN. TRY. Either link to a post that addresses them or explain the economic logic in your own words. Why would people buy in advance of the announcement when every indication is that it's going to increase the supply of PLEX on the market? And if they did, why don't we see evidence of it in the trade volumes? Once again, just connect the dots in a way that makes sense.
Prices go up and prices go down, That's just how economics works. Insisting that something nefarious is at work every time the market moves is simply irrational - especially when it flies in the face of logic. There wasn't anything special about this spike - it's happened dozens of times before in the PLEX market.
But for all we know, CCP did look into it of curiosity. Do you actually expect them to announce their findings every time the market moves and it WASN'T due to insider info just to satisfy a bunch of irrational conspiracy nuts who would STILL insist that CCP is lying? There's obviously no answer that will satisfy you. |

Zarek Kree
Lunatic Legion Holdings
121
|
Posted - 2017.04.03 19:17:08 -
[16] - Quote
Girka Kring wrote:What caused the shift in supply? Again, read the topic. Confidential info that leaked caused the shift in both demand and supply. Ppl who knew that PLEX will be 20% more expensive in a few days decided either to not sell PLEX and wait or to buy PLEX when they are still cheap. Obviously.
What would cause them to think that the announcement would cause a spike in PLEX prices? |

Zarek Kree
Lunatic Legion Holdings
121
|
Posted - 2017.04.03 19:48:51 -
[17] - Quote
Girka Kring wrote:Zarek Kree wrote:Girka Kring wrote:What caused the shift in supply? Again, read the topic. Confidential info that leaked caused the shift in both demand and supply. Ppl who knew that PLEX will be 20% more expensive in a few days decided either to not sell PLEX and wait or to buy PLEX when they are still cheap. Obviously. What would cause them to think that the announcement would cause a spike in PLEX prices? The initial decision that all AUR below 1000 will be erased, so ppl below 1000 AUR bought PLEX to get AUR above 1000. Then after CCP changed their mind it was already too late, PLEXes were bought and a new, higher price equilibrium was reached. It was also established that there was no other reason for the PLEX price to jump at that moment. There was no increase in active accounts number so the theory about rorqual pilots switching to multiboxing hulks was invalid.
CCP was very clear that this change won't take place for months. Why would people suddenly run out to beef up their AUR immediately following the announcement? Especially given that they'd be buying PLEX to get a lesser amount of PLEX? And again - there was no substantive increase in trade volume either before or after the announcement to support such a contention. People DID NOT run out to buy PLEX to beef up their AUR (primarily because that would be a stupid thing to do).
It's also far offset by the fact that CCP is going to dump all of that AUR back on the market as PLEX and virtually eliminate PvP PLEX losses due to the PLEX Locker. CCP's biggest problem is going to be preventing PLEX prices from falling too much after this change.
Are you telling me with a straight face that had you had advance notice of this announcement that you would have bought up a bunch of PLEX? It makes no sense.
The PLEX prices moved because economics. Prices move all the time for reasons that aren't simple and aren't obvious. Previous examples of this in the PLEX market have been well documented in this thread. |

Zarek Kree
Lunatic Legion Holdings
127
|
Posted - 2017.04.04 16:53:38 -
[18] - Quote
Brigadine Ferathine wrote:Like you would be dumb enough to do it in game... Every spy knows you use exterior comms to do things like that. You lashing out just makes me more suspicious.
I find your finger pointing to be even more suspicious. As they say, "Admit nothing, deny everything and make counter accusations." I always get suspicious when people make accusations without evidence of any kind. You're clearly trying to create a smokescreen to hide something. |

Zarek Kree
Lunatic Legion Holdings
131
|
Posted - 2017.04.05 14:03:09 -
[19] - Quote
Salvos Rhoska wrote:Zarek Kree wrote:How about 15 pages of analysis demonstrating that there is no logic or economic rationale for blaming the spike on insider trading? . Info may have nonetheless been leaked, contributing in some extent to the timing and magnitude of the spike. For example if info had been leaked to me, and me alone, you would have seen almost zero effect on the plex market, cos I lack capital to act much on the info. But nonetheless, there would have been an info leak.
Had info been leaked to you or me, we also would have sold PLEX, driving the price down - not bought it up. That's the logical disconnect in the leak theory that you're simply refusing to accept. Prices did spike, but there wasn't anything in the announcement that would have led anyone to believe that they would. |

Zarek Kree
Lunatic Legion Holdings
131
|
Posted - 2017.04.05 15:49:19 -
[20] - Quote
Salvos Rhoska wrote:I would have bought it, not sold it.
If I had trillions, I would have bought PLEX at 1bil as it was to no end.
Having a bank of x/500 units of PLEX is much better than a single PLEX. Allows me to compete per unit, rather than per lump PLEX. I can -0.01isk much more efficiently, whilst players fight to get 500 PLEX units for sub.
Also, as a smaller operator, that I can sell only as much PLEX as I need in isk, rather than selling it all at once.
Stock splits in the stock market (which is basically what this is) demonstrate that such a theory is misguided. No broker, analyst or financial advisor recommends buying stock before a split. They also don't recommend against it because they have decades worth of data proving that it makes no difference either way. There has never been a real life example of insider trading based on prior knowledge of a stock split announcement because that information alone is largely useless.
Not to mention that any perceived advantage would be negated by the other elements announced by CCP (Aurum conversion and PLEX Lockers) which will increase the supply of PLEX on the market, which will drive prices down. |

Zarek Kree
Lunatic Legion Holdings
131
|
Posted - 2017.04.05 17:02:40 -
[21] - Quote
Salvos Rhoska wrote: A) Stocksplits are almost always followed by greater net dividends. I have made a lot of money on that. (Not to mention an ideal moment to buy up the split stock cheap)
B) The announcement came after the spike.
C) It is far better to have 500 units that comprise a service in total, than a single unit. Its far easier to sell x/500, than 500, and far easier to find markets that will buy less at a time (albeit at a mark up).
A. Wow...no. You're talking out of your ass now. You just firmly demonstrated that you don't have the first clue what you're talking about. The dividend is always split along with the stock! ALWAYS. That's money that comes directly from the company so they always endeavor to keep the total payout flat. You don't make extra money on dividends after a split. Not ever. There's also the little matter of the fact that PLEX doesn't pay dividends, so it has no bearing on this discussion anyway. So not only is it a blatant lie that you made money that way, it's a useless lie. Stick to flawed logic - at least you can be wrong with some honor that way.
B. Exactly. The spike had NOTHING to do with the announcement.
C. That part is the only true thing you've said. Stocks split to bring smaller investors on board. But it doesn't drive prices up. Smaller units only have the affect of binging more people into the market, thus increasing volume. But that volume still follows the same market trends. More shares tend to smooth out the peaks and valleys, but they don't drive it one way or the other.
I continue to be amazed that against all facts, against all logic and against all evidence, there are some people who insist on continuing to follow this ridiculous insider trading conspiracy theory. It seems we truly do exist in a post-fact society in which the only thing driving beliefs are pre-existing beliefs. |

Zarek Kree
Lunatic Legion Holdings
131
|
Posted - 2017.04.05 20:19:51 -
[22] - Quote
Teckos Pech wrote:Don't you have a ceterius paribus assumption there? All other things equal, dividend split = stock split.
Well, in theory it doesn't have to. If a company has, let's say, 1,000,000 shares outstanding and is paying a cash dividend of $1.00 per share (or an equivalent stock dividend), that's $1m in dividends. If they announce a 2:1 stock split that increases available shares to 2m, they CAN continue the same $1 dividend policy, but that then costs them a total of $2m in dividend payments. So the reality is that they always split the dividend yield at the same rate as the stock split to maintain a level payout (in this example the yield would drop to $0.50). But splitting the stock shares and splitting the dividend yield are still two independent actions. In many cases, company bylaws even require the board to vote on them separately even though they're linked. |

Zarek Kree
Lunatic Legion Holdings
132
|
Posted - 2017.04.06 14:08:30 -
[23] - Quote
Salvos Rhoska wrote:Zarek Kree wrote:A. Wow...no. You're talking out of your ass now. You just firmly demonstrated that you don't have the first clue what you're talking about. The dividend is always split along with the stock! ALWAYS. That's money that comes directly from the company so they always endeavor to keep the total payout flat. You don't make extra money on dividends after a split. Not ever. A) You misread. I was saying that concurrent to stock splits, company boards very often vote for a greater dividend payout per unit. B) The spike apparently came concurrent to CSM being informed of the changes launch day. D) CSM are EVE players. I dont trust them anymore than I do you. Golden Rule applies.
A. BS. That's extraordinarily rare because it further muddies some already muddy accounting numbers around splits. I can't think of a single example. Name one company in the past 10 years that has announced a dividend increase that took effect at the same time as a split. Of course if you made so much money off of it, you should be able to give several examples.
Not to mention that they lock in the share record dates to prevent people from profiting off of it.
And also, once again PLEX doesn't have dividends so this particular point is meaningless to begin with. Please explain how dividends have anything to do with this topic.
B. You're mixing correlation and causality and then throwing in a healthy dose of circular reasoning. You can't point to a causal connection that makes any sense.
Insider trading only works if you KNOW with certainty how the market is going to react to the news. The fact that we're even debating this demonstrates that such a causal connection doesn't exist. With advance knowledge of the announcement, you say you'd buy, I say I'd sell. We cancel each other out. That doesn't drive a demand spike.
D. Nor should you. But villainizing the CSMs or CCP without evidence or at least a logical argument is worse. This is just nonsensical hysteria. |

Zarek Kree
Lunatic Legion Holdings
132
|
Posted - 2017.04.06 14:54:15 -
[24] - Quote
Salvos Rhoska wrote:Zarek Kree wrote:Salvos Rhoska wrote:Zarek Kree wrote:A. Wow...no. You're talking out of your ass now. You just firmly demonstrated that you don't have the first clue what you're talking about. The dividend is always split along with the stock! ALWAYS. That's money that comes directly from the company so they always endeavor to keep the total payout flat. You don't make extra money on dividends after a split. Not ever. A) You misread. I was saying that concurrent to stock splits, company boards very often vote for a greater dividend payout per unit. B) The spike apparently came concurrent to CSM being informed of the changes launch day. D) CSM are EVE players. I dont trust them anymore than I do you. Golden Rule applies. A. BS. That's extraordinarily rare because it further muddies some already muddy accounting numbers around splits. I can't think of a single example. Name one company in the past 10 years that has announced a dividend increase that took effect at the same time as a split. Of course if you made so much money off of it, you should be able to give several examples. Not to mention that they lock in the share record dates to prevent people from profiting off of it. And also, once again PLEX doesn't have dividends so this particular point is meaningless to begin with. Please explain how dividends have anything to do with this topic. B. You're mixing correlation and causality and then throwing in a healthy dose of circular reasoning. You can't point to a causal connection that makes any sense. Insider trading only works if you KNOW with certainty how the market is going to react to the news. The fact that we're even debating this demonstrates that such a causal connection doesn't exist. With advance knowledge of the announcement, you say you'd buy, I say I'd sell. We cancel each other out. That doesn't drive a demand spike. D. Nor should you. But villainizing the CSMs or CCP without evidence or at least a logical argument is worse. This is just nonsensical hysteria. A) W+ñrtsil+ñ Plex pays no dividends not did I claim it did. The point of stock splits and decisions on dividends was pertinent to insider information IRL, as raised by you in the post to which I was responding. You started talking about IRL rather than PLEX, not I. I simply responded to that. B) The spike coincided with the time that CSMs apparently where told the change would be implemented. The market did not know about it. D) No "villianization". Just a call for investigation of whether CSM are leaking information.
A. Except that was a one-time extraordinary dividend that paid out in 2011 based on PRE-SPLIT share holdings. The ordinary dividend was held constant and then split along with the shares. There was no additional money to be gained buying up shares before the split.
You can in fact make money IRL with insider information about a dividend yield increase or an extraordinary dividend payout because you can get in before the record date. But you CAN'T make money with insider information about a stock split. This announcement by CCP was effectively announcing a stock split - that's not something you can make money on IRL or in the game.
The other elements of the announcement (Aurum conversion and PLEX Locker) CAN drive the market - but only down.
B. You're missing my point. Let me type slowly so that you can follow: If you and I are both CSMs and we know this announcement is coming, you decide to buy up a bunch of PLEX based on ??????. But I decide to sell all of my PLEX holdings because I think this is going to cause the PLEX market to decline over the long-term. All other things being equal, we cancel each other out. That advance notice didn't drive the market one way or the other because we disagree on its expected effect and take opposite actions. |

Zarek Kree
Lunatic Legion Holdings
133
|
Posted - 2017.04.06 19:58:07 -
[25] - Quote
Salvos Rhoska wrote:Zarek Kree wrote: If you and I are both CSMs. This isnt about CSMs having taken market action on PLEX as a result of what they knew. Its about the possibility that information may have been leaked by CSM. Do you see the difference? The timing of the spike is suspect.
The result is the same. If we're both best buds with a CSM and he tells us about this impending change, you still buy and I still sell. We still cancel each other out and It still doesn't drive the market.
Do you see how there is no difference?
I find it suspicious that the spike coincided with a new moon. I can't offer any causal connection between the two - just a correlation. But that's apparently good enough for you. Should we instigate a lunar investigation? |

Zarek Kree
Lunatic Legion Holdings
133
|
Posted - 2017.04.06 20:07:34 -
[26] - Quote
Salvos Rhoska wrote:Zarek Kree wrote:Salvos Rhoska wrote:Zarek Kree wrote: If you and I are both CSMs. This isnt about CSMs having taken market action on PLEX as a result of what they knew. Its about the possibility that information may have been leaked by CSM. Do you see the difference? The timing of the spike is suspect. The result is the same. If we're both best buds with a CSM and he tells us about this impending change, you still buy and I still sell. We still cancel each other out and It still doesn't drive the market. Reload your page and read the rest of my post. If you and I have the same insider info, and the same certain prediction of how the market will react, we will take the same action. There is no "cancelling out". We would make the same choice of action (excluding you perhaps being an idiot and making the wrong choice). Furthermore, both of us will have acted well before the market reacts, or even has cause to react, to the impending change our insider info makes us privy to in advance of it happening.
Yeah, I saw that afterward and edited. But nobody is telling us that the PLEX market will spike because nobody knows that - including CCP. The only thing knowable is that PLEX prices will split, Aurem will be converted and they are introducing a PLEX Locker. It's up to us to decide what that means in terms of the PLEX market and we are free to arrive at different conclusions that cancel each other out.
What do you think somebody could tell me 3 weeks ago that would have made me by PLEX? Certainly nothing having to do with this announcement. |

Zarek Kree
Lunatic Legion Holdings
134
|
Posted - 2017.04.06 21:00:24 -
[27] - Quote
Teckos Pech wrote:Zarek Kree wrote:Teckos Pech wrote:Don't you have a ceterius paribus assumption there? All other things equal, dividend split = stock split. Well, in theory it doesn't have to. If a company has, let's say, 1,000,000 shares outstanding and is paying a cash dividend of $1.00 per share (or an equivalent stock dividend), that's $1m in dividends. If they announce a 2:1 stock split that increases available shares to 2m, they CAN continue the same $1 dividend policy, but that then costs them a total of $2m in dividend payments. So the reality is that they always split the dividend yield at the same rate as the stock split to maintain a level payout (in this example the yield would drop to $0.50). But splitting the stock shares and splitting the dividend yield are still two independent actions. In many cases, company bylaws even require the board to vote on them separately even though they're linked. No I get that, but the dividend is not solely a function of the number of shares. So the question is, are stock splits correlated with things that tend to increase dividends.
I suppose there is some correlation over an investment horizon of several years. Stocks split because their share prices have gone up substantially over time - typically due to good performance. Companies also frequently increase dividends due to good performance as well. But the causal factor for both is still rooted in good performance. And good performance is reflected in fundamentals long before it reveals itself in a split or yield. |

Zarek Kree
Lunatic Legion Holdings
134
|
Posted - 2017.04.06 21:04:25 -
[28] - Quote
Salvos Rhoska wrote:Cade Windstalker wrote:So yeah, this whole argument is poor. Salvos I'd think even your normal trollish behavior was more intelligent than this crap. Comments like this just encourage me even more that Im following the smoke to the fire. Ill respond to the rest tomorrow.
That smoke you think you see is your own cloudy vision. |

Zarek Kree
Lunatic Legion Holdings
135
|
Posted - 2017.04.07 00:26:54 -
[29] - Quote
Teckos Pech wrote:Cade Windstalker wrote:This is the graph that produced.Note how the Average Price goes up and down more or less inversely with the number of orders and the volume of PLEX being bought and sold on the market. This shows that Supply and Demand are working normally, this whole wonky theory that Supply hasn't changed is bunk, and a drop in supply is *very clearly* driving the spike in prices. This is why we graph things and check our assumptions instead of just eyeballing some tiny little volume lines and deciding they look about the same. Interesting. When the price is higher the volume is lower. In fact, it looks as if the price movements are primarily supply driven unless I'm mistaken. For there to be an increase in price and a decrease in volume traded, suggests an inward shift of the supply function. Looks like there might be a lag effect as well. If my conjecture is right, then I am having an even harder time fitting this into any sort of conspiracy to make ISK out of this.
Yeah, the inverse relationship between price and volume is really interesting because it's so consistent over time. I couldn't quite connect the dots on why that would be. If the price is generally a reflection of supply, then it makes some degree of sense to me. I've been assuming that it had something to do with the total amount of PLEX on the market being player driven (through real money purchases). But this is an area that I don't have the economic chops to properly visualize. |
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