Today BON announces a partnership with ProTrade.com: The Sports Stock Market. ProTrade is an online sports market that allows users to buy and sell players in the NBA, MLB, and the NFL throughout the season. Beginning this afternoon, for the first time, ProTrade will offer stocks of the AP's Top 25 NCAA basketball teams, which includes the Horns. Trading begins at 4 PM CST. Although you won't be able to trade individual Kevin Durant contracts, you will be able to trade the Longhorns from today throughout the rest of the season.
The trading itself works just like a stock market: the `Horns will be introduced via an IPO. Users will buy and sell the Longhorns based on their performance from here on out. ProTrade has set an IPO (initial public offering) price for each of the top 25 teams using a formula valuing regular season wins, conference tourney wins, and NCAA tourney wins. Obviously, the better the team, the more wins they'll earn, and, consequently, the higher they'll be valued.
You can personally valuate the Horns by clicking here. Simply enter the total wins you expect the Horns to achieve in each category and hit the equals sign below. If your number is more that the current price the Horns are trading for, then buy the Horns. If your prediction yields a number less than the current price, then you should be selling the Horns. You can buy and sell any team in the top 25 beginning this afternoon - not just Texas.
My -conservative- prediction for the Horns using ProTrade's evaluation tools:
21 regular season wins+
1 Big 12 tourney win+
A berth in the NCAA tournament+
2 wins in the NCAAs =
$118.00.
Based on what the Longhorn IPO projection of around $98, Texas looks like a buy, in this investor's eyes.
Check out the site and let us know what you think. Good luck.
--AW--