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Hehe 5 days of buying everything available... I have a sizable portfolio and WOW only 5% of all total blogs are left in public hands... This stat was 52% 5 days ago. The fully valued point in blogshares is P/E 250 not 50 as i posted a few days ago... and yes we have Billionaires now. So LBO (Leveraged Buy Out, all shares not owned by yourself are bought at 3 times the current market price) your weblog now if it has a low P/E and you have the Blogbucks to do this. ie. P/E less than 10. 2 strategies I've noticed for cranking up the P/E of your weblog... and making yourself rich in the process:

• 1. dump 5-10 shares on the public market... buy them back 1 at a time. Each share bought back will raise weblog price between 30%-60%.
• 2. Issue shares (just remember reverse splits is disabled) I'd recommend issuing shares in 1000 share blocks and buying them back yourself if possible... I haven't tried this strategy so dunno if you are allowed to buy shares after issuing them (you could probably lbo them though).

I find this rather interesting it's from the Blogshares Forum written by Seyed aka founder of Blogshares.

"So it should be possible for Louis (or any of the top 20 players) to buy current stock out at much higher than market prices (10x or more) then sell at a much higher price (100x or more). They have the muscle to do it and the resources are just sitting there gathering dust. So why doesn't this happen?"

The reasons this doesn't are:

• The game is changing so fast who knows what dynamic will be changed next.
• People haven't clued in yet... give em a couple days. There's a few hardcore players doing just that, buying everything.
• When valuations are based solely on incoming links the feedback loop creates more valuation for the stock each time it is reindexed. Why sell it? Have a look at the Moveable Type blogshare page... it has almost doubled in valuation in 10 days and the incoming links are not increasing that anywhere near that fast. I believe the feedback loop has at least 2 months to go before we see any slowing down on Moveable Type... again why sell it?
• who on earth is going to buy it at 100x or more... you would have to wait for the valuation to catch up which may take a month or two... game will most likely be totally different by then. You can't sell the #1 stock (again Moveable Type) in the game for much more than twice its current price. So this seems to me to be a rather silly notion.

Louis, Aine, and I were trying to figure out what the hell the limits were on the P/E since this was changed today. We pretty much nailed it after an hr or so of trading shares on the public. The old P/E of 3.5-3.8 being fully valued is now P/E 50 !! This is going to create some Blogshare Billionaires I can just see it now. So if you have a weblog and any blogshare dollars and it's P/E is in the 3.5 ish range or lower, LBO it now. So what if you pay 3 times, that's only the equivalent of buying it at P/E of 10-11. Next step dump 10 shares per 5000 total to the public market. (ie if you have a weblog with 20000 shares dump 40 shares) Buy them back in 6 hrs or hope someone else does... even better... repeat till P/E is 50 ish, dump lots for a unbelieveable profit.

The problems I can see with this "P/E 50" being the new fully valued point is it's going to get very tough for starting players to be able to afford anything. The lowliest of Blogs... like mine with $1000 valuations translate into $.20 / share at P/E 1. Multiply that price by 50... $10 / share. So a starting player could buy 50 shares not enough to make the price move anything significantly... may make $20 on his $500 investment. bleh... I'd say fuck that in a hurry and go find something else to do.

The selling of 25% or more total shares of a stock to the public has to move the price down... This doesn't happen if the P/E isn't fully valued ie 50, so why sell.

Seyed still hasn't addressed the #1 problem of the game. Why don't people sell their stocks. Answer: Valuations do not go down. There cannot be a bear market. More weblogs are added to the system all the time, therefore more links, more links equals more valuation... the feedback loop continues. The only stocks which are going to be bought and sold are the temporary Moveable Type, Blogger, Slashdot etc outgoing link type stocks.

Does the Happy dance.... Weblog finally IPO ed and I even have a link to here, that I didn't initiate :)

Update to the Blogshare Guide: 25% purchase allowed in one transaction... ie 1250 shares of a 5000 share blog is now allowed again. (Back to where it was originally, up from the 12.5% written in guide).
Index funds, more stock tips.... join the irc channel #blogshares on WyldRyde network (if your using mIRC it's listed there), tis very informative, ie profitable ;^)

Shelly's Poetry Finder idea is fascinating. I even managed to get myself flamed in the forum. :) I've really got watch those posts as it is pretty easy to be misconstrued.

Ahh, yes, the college year is finished.... being the local dj at the only club in this one horse town it's a good time of year... now till september :) scenery.

Sigh.. the Vancouver Canucks are out of the chase for Hockey's holy grail, Lord Stanley's Cup. They managed to lose Game 7 at home by a score of 4-2. It was a pretty good game all in all, other than the outcome. I have to hand it to the Minnesota Wild they stuck to their game plan and prevailed. The Canucks were up 2-1 after 2 periods of play. They simply couldn't play a full 3 periods of good hockey. Sigh... the same echo heard again... wait till next year. Incidently the Canucks were up 3 games to 1 in the series, seeing as they couldn't put them away in Game 5 at home when they had all the momentum, I give Jacques Lemaire (coach of the Wild) Kudos to a job well done.

Seeing as I'm blogshare rich, next goal is to get this worthless weblog to IPO. Hmm that would require me to be interesting. Difficult at the best of times seeing as writing about what I know would entail in no particular order: Music, Computers, gaming and life in the sticks. I'll think of something, perhaps the weekend Music scene will present something of interest.

Due to new changes in blogshares its time to rewrite my guide.

First things first, I better explain the constraints on this game. You are not allowed to buy more than 12.5% of all stock in 1 transaction. For example if there are 5000 shares total (the norm unless it has split, more on that later) in said stock, you can only buy 625 shares at once or 12.5%. There is no limit on the sell side of things though which makes it interesting.

You are only allowed 20 transactions in a 24 hour period. The time you must wait between transactions are as follows for same stock transactions: (you can buy or sell different stocks without delay, just watch you don't run out of transactions)
Buy >> Buy wait 20 mins.
Sell >> Buy wait 6 Hours!
Buy >> Sell wait 6 Hours!
Sell >> Sell wait 20 mins.
You cannot buy if more than 2500 shares (? haven't tested this rule) of this stock was bought within the last 20 minutes. If this is the case usually the stock is too expensive to be worthwhile buying... If you really want it though check the transaction list of the stock to see when your 20 mins is up. It doesn't specifically tell you, however, checking the timestamps on the last 4-5 transactions and comparing to who owns the stock and when they bought it will pretty much tell you when your able to buy again.
You should be able to Buy >> Sell a couple times a day.

P/E (Price to Earnings) is the multiple of the stocks price to it's valuation. Valuation is solely based on incoming links. The E in P/E is a misnomer as there are no earnings per se in blogshares, but it is a standard economic term. The P/E should be in the 3.2-3.8 range. If it is in that area it is fully valued and will usually not go any higher, so don't bother buying it at this price. (There are 2 exceptions to this explained shortly).

The how to part....

• 1. (I'm leaving this one here as it is supposed to be back soon) Always attempt to keep an eye on the stock ticker... Why you wonder? It is updated before any of the other pages are. After a transaction is made it will show the updated price 3 times and that's it.
• 2. When your first starting out watch the "Hot Stock" page closely it seems to be updated about once an hour. It may be updated more often than that, not positive, no more than twice an hour though. What your looking for is the bargins and available stock. Anything with a P/E less than 2 is a bargin (P/E less than 1 is a steal). Now spend what you need to get 625 shares of your bargin stock. So if your just starting out any shares under $0.80 will net you 625 shares. After this transaction you will see a nice 10%-20% increase in the share price. Now your stuck idle for 6 hours right??? Sorta unless you bought say a $0.05 stock to start, you should have enough to buy it again in only 20 minutes, that's the trick to making big $$$, buy lots of the same stock.
• 3. If you had an hour or so to burn and used it purchasing the same stock 3-5 times you now hold 1875-3125 shares of said stock and its value should have at least doubled from where you started, it should also have a P/E approximately double, possibly higher if someone else bought as well. Now you wait your 6 hrs to sell....
• 4. Now the fun part SELL IT ALL!!! The price will crash as you've sold close to 50-75% of the shares and you will have almost doubled your money and you can do this all over again with another stock. Rarely will you be able to use this strategy on the same stock over and over because of the 6 hour wait between Sell >> Buy :(
• 5. After you hit around $10,000 Net Worth strategy changes a little, the hot stock page no longer is your best source of stocks as almost all of them are stocks in the under $1.00 price range and you need higher priced stocks to keep making money as fast before running out of transactions. The top 500 page and of course the stock ticker becomes the places to look. You need to find stocks in the P/E range of 1-2 that you can afford to buy 1250-2500 shares or more with luck.
• 6. Make a search.... here's what I use: Display 500, Valuation $1 - 2000000, P/E 0.05 - 3.2, Price $1.00 - $1000 Sort P/E Ascending or Valuation Descending. You may want to change the lower/higher end of the Price to meet what you can afford. If your just starting out I would use Price $0.03-$0.25 and sort P/E Ascending
• 7. IMPORTANT: Look at the incoming links and check that the valuation of those links is approx the same as the valuation of the blog. If the incoming links are much higher you may want to hold the stock until it is indexed again and make a nice profit that way; however, that may take more than a few days... If it's much lower sell it quick...

Brief list of don'ts:

• 1. Don't buy shares in a blog stock that has split unless you can buy 12.5% in one shot (good luck). The reason is you can't buy or sell enough shares to make the price move... how can you make money if the price doesn't change?
• 2. If the P/E is over 3.7 Don't Buy it, Sell it... The ONLY exceptions are if there is a buy order for a higher price... you will still have to wait 6 hours to sell and by then the order will probably be long filled, or you see the incoming links are worth lots more than the current valuation of the blog stock and intend to hold the stock until it is reindexed. That may take days/weeks... though premium members can now request to have a blog reindexed. This happens fairly quick, usually within an hour or so it is reindexed. This no doubt is why Moveable Type, Blogger, Blogshares etc. are being reindexed daily. There is a limit on this though, 24 hours between reindexes.
• 3. Don't buy shares in a blog with a high valuation and incoming links which are no where near that value... your just asking for trouble... it may get reindexed while you hold it (remember 24 hours between reindexes) and the new price will be far below what it is now. The reason it has a high valuation is probably because it had a link from a blog like Moveable Type, Slashdot, Blogshares when the blog was last indexed but now those links are no longer there. (Don't say I never warned you)

Tips I've come to love...

• When a blog stock is reindexed it first shows on the stock ticker with it's new price (did I mention to keep an eye on the ticker... yeah I did). Giving you a brief (approximately 5-10 mins) opportunity to buy or sell before the other pages are updated.
• When a blog stock is reindexed especially one such as Moveable Type or Blogshares check the stock of the corresponding outgoing links more than a few times I've found stocks trading in the $0.20 range... :) When they are reindexed a nice 500% increase is normal.
• After you have sold all of a particular stock there is a option to remove that stock from your list of owned stocks... don't do it. That is your own personal stock ticker with the added bonus that it shows you the stocks P/E ;-)

Bonds

Well if you have $50,000 - $500,000 or so laying around you don't need this guide :) if so I'm kinda partial to the top 1000. The reasons I like the top 1000 are:

• 1. The top 1-500 stocks are almost always all bought up so there really isn't a whole lot of growth potential in them. The only growth potential is the "feedback loop". The feedback loop is when for example Blog A has many incoming links and a valuation of $5000 with only 1 outgoing link to blog B. Now Blog B only has this one incoming link for a valuation of $5000 (the total value of all incoming links are what a blogs valuation is). Blog B has one outgoing link to Blog A. You can see what happens next. Blog A's valuation in increased by $5000, whick in turn now has a outgoing link value to blog B of $10000. This is why outgoing link values have been capped at $25,000.
• 2. We don't have a clue what stocks are in places 500-5000. So who knows maybe buying all 4000 shares of a $0.20 stock driving the price to about $0.60 pushes it into the top 1000.

The Exchange

The Exchange rocks for a premium member (unlimited transactions), however, without a checkbox option for "fill complete order only" I can't recommend a free member use it as transactions are simply too valuable.

Curious why 50 shares of Burningbird showed up in your portfolio? That was my good deed for the day :)

Rewriting the strategy guide... should be up by tommorrow I'm hoping. I will try to explain the bond market, buy/sell orders along with all the new changes Seyed has made.

I didn't do too bad for 12 days of trading. Blogshares went live earlier today, and I started the month with $248,219.74 in place #48 on the top 100 richest players page. Sigh... wish I would have found the site about 10 days earlier.

Yay, no more messing with <table>, <tr>, <td> tags etc. Cascading Style Sheets (css) rock my world :) Gracias to Owen Briggs, glish.com, brainjar.com, tantek.com, alistapart.com and of course www.w3.org for making it all make sense.

Comments? Please :)