Using Veritas to Construct the "Per…

29-04-2017 Hits:87212 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:81129 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:80971 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:85445 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:81943 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:84131 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:55194 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:83389 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:83130 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:83020 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:89278 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:86993 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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Navistar’s results analysis:

In 3Q2008, Navistar reported revenues increased 34% to $4.0 bn over $3.0 bn in 3Q2007 as increased contribution from military products and improved pricing helped the company to more than offset the weakness in traditional truck markets, engine parts and financial segment. Navistar’s U.S military sales increased significantly to $1.2 billion in 3Q2008 compared to just $59 million in 3Q2007 (over a 20x increase, a exasperatingly unbelievable pop that raises many questions) . As a result of higher military sales, Navistar’s largest customer exposure tilted from Ford (a company struggling with its own solvency issues that actually ended up on our short scan) previously to the U.S government in 3Q2008. The U.S. government contributed the largest proportion to company’s sales with 32% of revenues in 3Q2008 as against 3% in 3Q2007. Besides higher military sales, Navistar’s pricing improved substantially due to change in product mix and introduction of ProStar products. Navistar’s unit price in the truck segment increased 55% y-o-y while engine unit price increased 13.5% y-o-y leading to expansion of margins. Despite a 28% increase in cost of product sold, Navistar’s gross margins increased to 21.2% as against 17.9% in 3Q2007 while its operating margins increased to 6.6% in 3Q2008 versus a negative operating margin of 0.6% in 3Q2007. However despite improved pricing and increased contribution from military segment, Navistar’s traditional truck and engine segment continued to face challenges. In 3Q2008 shipments of school buses shipments and expansion markets cloaked a y-o-y volume decline of 16% and 4%, respectively while engine shipments excluding intercompany sales witnessed a decline of 68% in 3Q2008 over 3Q2007. Segment profit from the engine segment declined 92.3% to $5 mn in 3Q2008 from $65 mn in 3Q2007 while financial services reported a loss of $1 mn as against profit of $40 mn in 3Q2007. However higher profits from the truck segment at $357 mn in 3Q2008 against $7 mn in 3Q2007, helped Navistar to report profit before tax of $280 mn versus $5 mn in 3Q2007. Overall improved pricing and higher military sales resulted in Navistar’s net income to increase to $272 mn (or $3.68 per share) versus a loss of $4 mn (or $0.05 per share) in 3Q2007. As a result of record growth in 3Q2008, Navistar has raised its guidance for full year. Earlier in August 13, 2008 (just over two weeks ago) Navistar issued full year EPS guidance between $4.26 and $5.72.

However following robust 3Q2008 results, Navistar had upgraded its full year 2008 EPS guidance between $6.35 and $7.45 on September 3, 2008. I find this to be very, very fishy, and deserving of much closer scrutiny. Trucks and parts are not nearly as volatile in pricing as the financial assets held and continually mispriced by entities such as Merrill Lynch, Lehman and Ambac, hence I find it very hard to believe the company could actually be off by this amount to the negative with just two weeks to the reporting date - Very hard to believe. I will keep the blog posted.