One of the ways to earn extra zoints playing ExtZy is by investing in stocks that would bring you dividends.
Okay, you say but how does that work? I mean, to earn a dividend I must invest into a share that would pay me a dividend (i.e. a web-site that would be visited more frequently) and I do not know that in advance. Oh, sure, I can bet on web-sites that are famous and visited but then other ExtZy players would have already figured those out and as they bought their stock, their share prices would have gone up. In other words, the high dividend would have already been priced in. It’s not very likely to earn extra dividend unless something spurs up the visitors’ rate. But on the other hand if nothing of the sort happens, you would have paid a high price for the stock and the return rate would therefore be low.
The key phrase here is “unless something spurs up the visitors’ rate”. Now I wonder what that might be. It is difficult to predict if the visitors’ rate would go up or down in any particular week or over a longer period but there is one type of investment available on ExtZy that works somewhat differently – countries.
The dividends on those types of investments depend on the number of times a country is mentioned in the media so betting on a rise (or a fall) in dividend is a little less uncertain. How so? The trick is to work out which county that has thus far been rarely mentioned in the international news (incl. sports news) stands a fairly good chance of being mentioned more often because of … well, anything really.
Thinking of Australia already, what with the floods and all? That would be a mistake (let’s hope!!!). The price of Australia has shot up after Christmas and even more in the beginning of the New Year. This is definitely not just about cricket or Australia Open – it was well known in advance that those were coming so whoever thought about making some extra zoints is likely to have bought in beforehand.
It was the floods that made Australia hit the headlines across the world. However if you did not have the shares at the time they shot up, it is not very wise to buy them now. I sincerely hope that Australia will not be mentioned as much this week and even less in the next one – this will suggest that the disaster is being contained and the international news focus is shifting away to other places – you can in fact see that the share price have peaked around the 5th of January and have declined afterwards.
Assuming it does get worse and Australia does get mentioned even more than now, don’t forget that this only means more dividends, not necessarily a rising share price. Those dividends will contribute to your portfolio but for how long? Would this suffice for a decent return?
Australia is not usually the country that makes the news very often, so you will end up paying a very high price – seven times what the share was trading for just three weeks ago – only to see the dividends decline in due course as Australia gets mentioned less and less in the news. As this happens, the share price will decline and the dividends will decline.
Someone would be inclined to say “you don’t know that”. Of course I don’t – it’s a matter of probabilities. What I do know is that currently Australia trades at 7 zoints and Afghanistan trades at 1 – which one do you think will make the headlines more often going forward?