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Wall St. Alchemy Decoded

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posted on Sep, 15 2008 @ 09:16 PM
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Buying stocks is a form of investment that is popular with folks who have some knowledge about how the world is turning and are willing to put their money where their mouth is. The value of a particular stock is determined by many factors: one of them, and not exactly high one, is the dividend payment that the stock holders receive as a form of profit sharing. Of course, the big buck isn't made that way, but when a company stops temporarily paying the shareholders due to many reasons, it can affect the value of the stock, because this stopping may be interpreted as a some kind of trouble that the company is facing. Only the insiders know what is the real cause, unless the company explains its decision to the shareholders, which is mostly the case.

And so we use the NostradamusINV software and use the diminishing amount that the global dividends are paying to figure out how much points Dow Jones will lose:

The full amount = DIVIDENDS
The diminished amount = DIV

The payment has shrunk from DIVIDENDS to DIV and that's the time to start selling.

Since DIV is a Roman number which equals 504 in decimal, Dow Jones should lose 504 points on the first day of the sell-off.
moneycentral.msn.com...
Right on the money, so to speak.

So if you buy the stock of the company that makes the infallible NostradamusINV today, you may be worth of millions tomorrow.




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