In this next article I’ll be showing you how to easily estimate StarBond TAGs in your head without the need for a calculator. There are two traditional ways to calculate a new TAG: add the box office of the last 5 films and divide by 5; or multiply the TAG by 5, add the estimate for the film being added and subtract the box office of the film being dropped and then divide by 5.
But there is a much easier way to quickly work out an estimate of the next TAG. All you have to do is get the box office of the film being dropped and subtract it from the price of the film being added. Then simply divide that number by 5 and add it to the current TAG. (Be careful not to use the StarBond current price, you must use the current TAG). You can then see the difference between your projected TAG and the current price to see if it’s worth investing in. Easy.
Let’s work through a simple example to show the working. Film being added = H$50, film being dropped =10m. So all you do is subtract the film being dropped (10m) from the film being added (H$50) which gives 40. Divide this by 5 to give 8. So after the next adjust this StarBond will be H$8 higher than current TAG. It also works if the film being dropped is of higher value; you just end up with a negative number which of course means the next adjust will be below, rather than above current TAG. Of course market forces since their last adjust will almost certainly mean the StarBond is not priced at its current TAG which often means there is a greater (or lesser) margin of profit to be had. Whether the difference between estimated TAG and current price is different enough to justify an investment will of course depend on your portfolio size, the amount of cash you have and how far into the future the adjust is.
