Using Veritas to Construct the "Per…

29-04-2017 Hits:88628 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:82308 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:82197 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:86695 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:83117 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:85239 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:56345 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:84587 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:84279 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:84134 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:90640 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:88203 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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This article ran in Barron's over weekend. It is interesting given my opinion of the subject matter. See "Anyone who subscribes to my blog should have earned their initial investment back several times over" then move on to Barrons:

 

The Hartford: Hedged Against Disaster

Hartford Financial is on firmer footing than investors might think, making the insurer's stock look like an ultracheap bet on recovery in the bond market. A chance to double your money in the next few years.

WANT TO MAKE A LEVERED BET on a recovery in the bond market? For those willing to take some risk, there are few better bets than buying the stock of Hartford Financial Services Group...

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Even with all of this, the Hartford, as the company is known, seems to be a compelling buy. That is our conclusion after closely inspecting information released by company executives at the December Investor Day. (Hartford Financial officials were unavailable for comment last week because of a quiet period before this Thursday's scheduled profit report.) Among other things, the insurer's executives talked of a springback potential in book value once bond prices recover from current panic levels.

The Hartford's bond holdings are largely of high quality, with a negligible default risk. As for impairment risk, company officials have put that at less than 15% of its $11.6 billion unrealized loss portfolio, even under severe economic conditions. And if it were necessary to take charges on these securities, they would be incurred over several years.

A return to more normal conditions in the bond market won't boost Hartford's net worth back to year-end 2007's $61.20 a share. The company has had to take too many earnings write-downs in the past three quarters, including $3.5 billion in after-tax asset-impairment charges and a charge of nearly $1 billion resulting from a shortfall in the expected results of its variable-annuity business, owing to stock-market declines. Offsetting these negatives somewhat was a largely undilutive $2.5 billion infusion of new capital into Hartford by Allianz (ALV.Germany) in October. In return, the German insurer got debt and preferred shares.

Yet a return in book value to $50 a share in the next year or two is possible, particularly if Washington's push to boost the capital coursing through U.S. financial markets and bolster asset prices finally bears fruit. Likewise, earnings should stabilize after a horrid third-quarter loss of $2.6 billion, largely the result of bond- and stock-market losses hitting life-insurance results and Hurricane Ike hurting property-and-casualty earnings.

MORGAN STANLEY ANALYST NIGEL DAILY foresees Hartford Financial generating operating earnings of $5.40 a share in 2009 and $5.95 in 2010. His estimates are below the consensus forecasts, which contain a lot of stale assumptions. Nonetheless, Daily indicated in a recent report, the stock looks dirt cheap, and he later raised his one-year price target to 25. Based on his 2009 estimate, Hartford trades at a price-to-earnings ratio of just under 2.5 times. And the stock fetches less than half our conservative year-end book-value estimate of $30 a share.

The Morgan Stanley analyst further asserts that, when the equity and credit markets improve, Hartford's P/E multiple could jump. Historically, the Connecticut-based insurer has traded at an average of 10 times earnings and 1.4 times book value. If it gained back most of that valuation, shares could be changing hands in the 40s. In fact, that price could be attained in a year, assuming that the company incurs no more major earnings charges. A return of book value to 50 in the next year or two could send the shares even higher. One shouldn't forget that the Hartford traded at nearly 100 just 13 months ago.

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Adding to the perceived weakness has been the company's rigor in taking permanent securities charge-offs, after subjecting its unrealized-loss portfolio to tough tests. Unlike unrealized losses, these hit not only GAAP book values, but also reported earnings.

For its structured securitizations, like those backed by commercial mortgages and other asset-backed securities, the company first makes draconian assumptions about the economy's future, against which it tests its portfolio's viability. Among them: a 10% jobless rate, a 30% drop in commercial real-estate values, a 40% drop in home prices and other economic misery.

As far as straight corporate and real- estate debt goes, the company permanently impairs any security that shows scant prospect of recovering over the next two years. This latter standard is more onerous than those followed by most of the Hartford's competitors, but it is being scrapped for fourth-quarter 2008 results

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The Hartford led off an industry counterattack at its Dec. 5 Investor Day. No, the company maintained, it has no major capital issues that would stop it from honoring all claims or lead to a credit downgrade of its life-insurance operation. Its property-and-casualty unit had $1.1 billion in excess capital that could be infused into the life company. And the parent company has $2.4 billion in unused credit and contingent-capital facilities that could be downstreamed.

Perhaps most reassuring, executives said they had enjoyed better-than-projected performance on their hedges, thus reducing the impact of tumbling stock prices. Short of a slide in the Standard & Poor's 500 below 700 -- it is now around 800 -- no capital infusions would be necessary.

Certainly, the Hartford's shares aren't riskless. The insurer's normalized earnings power of around $10 a share will remain tantalizingly beyond reach for at least several years without a startling rally in both the U.S. stock and bond markets. But the battered shares could double or even triple in the interim.

Conclusion: Stock Broker and Newspaper financial advice can be hazardous to your networth! See Blog vs. Broker, whom do you trust! - a comparison of the blog's research model and the most prominent Wall Street bank's buy and sell recommendations over a comparable period - Goldman Sachs, Citibank, JP Morgan, and Morgan Stanley.