Earnings Line on Stock Charts

Something that GolfInvestors includes in its stock charts for players is an earnings line. It is a green line (with the idea that the color green represents money) showing the trend of the player's tournament earnings as compared to their stock price.

See the example below of the 365d / 1y chart for Geoff Ogilvy [ GEOGY ] on the 2007 Season Market as of today, Sept 11th, 2007.

The chart is not the best formatted chart, but it does show you the trend of the player's stock price as compared to their underlying earnings.

The chart shows Ogilvy's market cap (not per share price) as the blue line. As mentioned above, the green line is his earnings. In addition, you will also see a grey line and an orange line. The grey line is the trading volume and the orange line represents the amount that Ogilvy raise on the 2007 Season Market.

As one can see in this example with Ogilvy, the trend over time and as the 2007 Season Market gets closer to its finish date (midnight on December 31, 2007), the player's market cap / stock price converges with their earnings. One would hope that trend is with most players as it would mean that the market, namely the investors trading on the market, is somewhat intelligent.

The more that the market cap / stock price adjusts (i.e. blue line is not level), the less certain the market is about a player's underlying earnings. The less the market cap / stock price (i.e. blue line is more or less level), the more certain the market is about a player's underlying earnings.