Using Veritas to Construct the "Per…

29-04-2017 Hits:88603 BoomBustBlog Reggie Middleton

Using Veritas to Construct the "Perfect" Digital Investment Portfolio" & How to Value "Hard to Value" tokens, Pt 1

The golden grail of investing is to find that investable asset that provides the greatest reward with the least risk. Alas, despite how commonsensical that precept seems to be, many...

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The Veritas 2017 Token Offering Summary …

15-04-2017 Hits:82284 BoomBustBlog Reggie Middleton

The Veritas 2017 Token Offering Summary Available For Download and Sharing

The Veritas Offering Summary is now available for download, which packs all the information about Veritas in a single page. A step by step guide to purchasing Veritas can be downloaded here.

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What Happens When the Fund Fee Fight Hit…

10-04-2017 Hits:82176 BoomBustBlog Reggie Middleton

What Happens When the Fund Fee Fight Hits the Blockchain

A hedge fund recently made news by securitizing its LP units as Ethereum-based tokens and selling them as tradeable (thereby liquid) assets. This brings technology to the VC industry that...

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Veritaseum: The ICO That's Ushering in t…

07-04-2017 Hits:86672 BoomBustBlog Reggie Middleton

Veritaseum: The ICO That's Ushering in the Era of P2P Capital Markets

Veritaseum is in the process of building peer-to-peer capital markets that enable financial and value market participants to deal directly with each other on a counterparty risk-free basis in lieu...

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This Is Ground Zero for the 2017 Veritas…

03-04-2017 Hits:83103 BoomBustBlog Reggie Middleton

This Is Ground Zero for the 2017 Veritas Offering. Are You Ready to Get Your Key to the P2P Capital Markets?

This is the link to the Veritas Crowdsale landing page. Here is where you will be able to buy the Veritas ICO when it is launched in mid-April. Below, please...

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What is the Value Proposition For Verita…

01-04-2017 Hits:85225 BoomBustBlog Reggie Middleton

What is the Value Proposition For Veritas, Veritaseum's Software Token?

 A YouTube commenter asked a very good question that we will like to take some time to answer. The question was, verbatim: I've watched your video and gone through the slides. The exchange...

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This Real Estate Bubble, Like Some Relat…

28-03-2017 Hits:56329 BoomBustBlog Reggie Middleton

This Real Estate Bubble, Like Some Relationships, Is Complicated...

CNBC reports US home prices rise 5.9 percent to 31-month high in January according to S&P CoreLogic Case-Shiller. This puts the 20 city index close to an all time high, including...

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Bloomberg Chimes In With My Warnings As …

28-03-2017 Hits:84567 BoomBustBlog Reggie Middleton

Bloomberg Chimes In With My Warnings As Landlords Offer First Time Ever Concessions to Retail Renters

Over the last quarter I've been warning about the significant weakness in retailers and the retail real estate that most occupy (links supplied below). Now, Bloomberg reports: Manhattan Landlords Are Offering...

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Our Apple Analysis This Week - This Comp…

27-03-2017 Hits:84260 BoomBustBlog Reggie Middleton

Our Apple Analysis This Week - This Company Is Not What Most Think It IS

We will releasing our Apple forensic analysis and valuation this week for subscribers (click here to subscribe - lowest tier is the same as a Netflix subscription). As can be...

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The Country's First Newly Elected Lame D…

27-03-2017 Hits:84119 BoomBustBlog Reggie Middleton

The Country's First Newly Elected Lame Duck President Will Cause Massive Reversal Of Speculative Gains

Note: Subscribers should reference  the paywall material here for stocks that should give a good risk/reward scenario for bearish trades. The Trump administration's legislative outlook is effectively a political desert, with...

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Sears Finally Throws In The Towel Exactl…

22-03-2017 Hits:90620 BoomBustBlog Reggie Middleton

Sears Finally Throws In The Towel Exactly When I Predicted "has ‘substantial doubt’ about its future"

My prediction of Sears collapsing once interest rates started ticking upwards was absolutely on point.

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The Transformation of Television in Amer…

21-03-2017 Hits:88188 BoomBustBlog Reggie Middleton

The Transformation of Television in America and Worldwide

TV has changed more in the past 10 years than it has since it's inception nearly 100 years ago This change is profound, and the primary benefactors look and act...

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We have shortlisted 4 companies for ‘long' biased research. I would like to be clear that this does not necessarily reflect my opinion on the direction of the US equity markets in general, so use this research with care and caution in regards to the general market. I am personally quite bearish. [I placed this edit here to emphasize that the long biased research is to aid those who wish to pursue a delta neutral or long short portfolio, and is not meant to imply that I am bullish on the equity markets in general.] The steps followed to shortlist these companies are illustrated below.

Steps:

•1.     Initially selected 1042 US non-financial

(we already have a heavy dose of financials covered) companies with market cap of more than $500 mn and share price of greater than $15 for scrutiny (this scan has consequently been expanded to companies with a share price greater than $5).

•2.     Out of total 1042 companies, we excluded 888 companies with moderate to high debt levels and debt to operating ratios, due to what we see as a continuance of the deleveraging effect in the US. This left us with 154 companies to the next level for further study

•3.     Out of remaining 154 companies, we selected 38 companies with constant and consistent positive revenue (taking keen notice to increasing revenues through the recessionary period), gross profit and EBITDA growth and improved margins both y-o-y as well as q-o-q and which had consistent calendar year EBITDA margin that did not experience volatile fluctuations (ex. no "one hit wonders", or conversely, companies that collapsed during the asset securitization crisis).

•4.     At stage 4, we selected the 12 most probable companies for final scrutiny by looking at filings and related documents

•5.       We shortlisted 4 companies out of the 12 based on detailed scrutiny of the filings, footnotes and the consistency and credibility of management communications (and/or the lack thereof) combined with a subjective critique of each company.

•6.       As a purely fundamental driven short listing process, it is of no surprise that the finalists all ended up in industries that I see as very promising for the next several years looking forward.

In essence, these shortlisted companies are the qualitative opposite of the 70 or so tickers that I have been bearish upon over the last two years.

Of the four shortlisted companies, the summary below describes the one that we are working on now. It had some stiff competition, but we chose it as the first candidate due to a lack of reliance on acquisitions to drive growth. Several other companies relied very heavily on acquisitions as a growth driver, and although they maintained consistent profitability and margins, a spike in borrowing and/or operating costs may cause the impressive acquisitive results to stagnate. I doubt very seriously if rates will be going down from here... If the DCF analysis and forensic model of this company pans out, I will be issuing a full forensic report shortly thereafter for blog subscriber consumption. If the modeling does not pan out as expected, we will move on to numbers two and three in the short list.

Subscribers may download the shortlisted company preview here: Preliminary Summary of LRN Preliminary Summary 2009-06-14 09:31:29 545.55 Kb

I'll be previewing a new short-biased shortlisted company in about 24 hours.