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6:47 AM
CJ
Every time I purchase a stock, I make myself write down why I thought it would be a good idea to make the purchase.
* Disclaimer: This article is in no way a solicitation to buy, sell, or trade for the stock. It is just my analysis of my thought process when I purchased the stock. *
* Disclaimer: This article is in no way a solicitation to buy, sell, or trade for the stock. It is just my analysis of my thought process when I purchased the stock. *
Stock Name: Starz
Stock Ticker: STRZA
Purchase Date: (Initial) January 15, 2013
Purchase Amount: 9 shares @ $15.84
Mindset during initial purchase:
Starz was initially spun off by Liberty Media on January 14, 2013. CNN Money was forecasting a huge jump in the stock price.
How big?
CNN Money Forecast (STARZA) on 1/17/13
Low: $112.00
Medium: $122.50
High: $155.00
Of course, I was fooled by the inaccurate (or yet to be updated) forecast. CNN Money was still forecasting Starz's parent company (Liberty Media) and hadn't done a proper forecast on Starz (as of my initial purchase).
The revised forecast appeared on Valentine's Day:
Low: $10.50
Medium: $15.34
High: $21.00
According to Zach's (on the date of my initial purchase), Starz currently has about $1.1 billion of debt and access to $450 million bank credit facility.
Lessons Learned from Purchasing This Stock
Ooohh!!! A new term for me to learn! Bank Credit Facility.
Bank Credit Facility: a type of loan made in business or corporate finance context. (Scratches head)
According to investopedia: Companies frequently implement a credit facility in conjunction with closing a round of equity financing (raising money by selling shares of its stock). A key consideration for any company is how it will incorporate debt in its capital structure, at the same time it must consider the parameters of its equity financing. The company must look at its capital structure as a whole, determining how much capital it needs immediately and over time, and the combination of equity and debt that it will use to fulfill those requirements.
Stock Ticker: STRZA
Purchase Date: (Initial) January 15, 2013
Purchase Amount: 9 shares @ $15.84
Mindset during initial purchase:
Starz was initially spun off by Liberty Media on January 14, 2013. CNN Money was forecasting a huge jump in the stock price.
How big?
CNN Money Forecast (STARZA) on 1/17/13
Low: $112.00
Medium: $122.50
High: $155.00
Of course, I was fooled by the inaccurate (or yet to be updated) forecast. CNN Money was still forecasting Starz's parent company (Liberty Media) and hadn't done a proper forecast on Starz (as of my initial purchase).
The revised forecast appeared on Valentine's Day:
Low: $10.50
Medium: $15.34
High: $21.00
According to Zach's (on the date of my initial purchase), Starz currently has about $1.1 billion of debt and access to $450 million bank credit facility.
Lessons Learned from Purchasing This Stock
Ooohh!!! A new term for me to learn! Bank Credit Facility.
Bank Credit Facility: a type of loan made in business or corporate finance context. (Scratches head)
According to investopedia: Companies frequently implement a credit facility in conjunction with closing a round of equity financing (raising money by selling shares of its stock). A key consideration for any company is how it will incorporate debt in its capital structure, at the same time it must consider the parameters of its equity financing. The company must look at its capital structure as a whole, determining how much capital it needs immediately and over time, and the combination of equity and debt that it will use to fulfill those requirements.
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