Saturday, 18 June 2011

Atlas Shrugged: Part 1 is ARB

ATLAS is currently ARB, which means that it has already made more in box office than it’s current HSX price. This is guaranteed profit as the stock will de-list according to it’s box office total. ATLAS is currently priced at H$3.97 but has already made $4.56m at the box office. At current prices, it is H$0.59 undervalued, i.e. there is H$59,000 to be made and it still has until the 8th July to make some more.

ARB is short for Arbitrage, a real world investment term that means guaranteed profit. The opposite of ARB is BRA and refers to a stock that is guaranteed to drop in price because it’s HSX price is higher than it’s box office takings.