Using Veritas to Construct the "Per…

29-04-2017 Hits:84563 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:79034 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:78884 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:83362 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:79932 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:82242 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:53217 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:81239 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:81251 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:81052 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:86901 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:84919 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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I had the analyst perform a quick scan of PPD's latest quarterly result and prepared some points on its relative strength and outlook. However, we could not find in greater details on what exactly is the FTC investigation regarding misrepresentation in the sales materials used in Identity Theft Shield and ADRS program. The company called this investigation as routine and incidental to its business. We are further scouring through the footnotes to find additional tidbits which can throw some more light in this matter.

Following are some of the key highlights of PPD's latest quarter results:

  • PPD's total active membership declined 3.2% y-o-y in 1Q 09 after shrinking 1.2% in 4Q 08, while at the same time total revenue fell at a lower pace of 2.7%. Membership fees which constitute 94.5% of the total revenue declined 2.0% to US$106.9 million from US$109.1 million in the comparable quarter a year ago. The company alleviated the impact of the sharp fall in the membership sale by increasing the new associate membership fees by 66.6% to US$119.17 from average of US$71.53 in 2008. They have done this several times, even as associates strain to make money and revenue and membership trend downward. This is how they are attempting to plug the holes in the revenue leakage. The advertisement of the company as a financial independent person for the members makes it easier to achieve enrollments during the economic downturn as unemployment remained very high.
  • During the first quarter ended March 31, 2009, net income increased 7% to US$17.1 million from US$15.9 million a year ago. This was due to the decline in the operating cost by 5.2% to US$85.7 million. Please note that in our earlier report, we had explicitly highlighted that the company's commission structure is very stringent for the employees to succeed in this scheme. This is one of the key reasons as to why PPD has a very low success ratio for its members as the stringent commission norms forces them to quit the company after sometime while the management (and senior level directors) make money. In this backdrop, the commission expenses fell 12.4% to US$27 million which helped in reducing the operating cost. Again, the hole in revenues are trying to be plugged upon the back of their already marginal performing sales force.
  • Diluted earnings per share jumped 17.8% to US$1.52 per share from US$1.29 per share a year ago. Despite 7% growth in net income, the company achieved 18% EPS growth largely due to the reduction in the outstanding shares which fell by 11%. The company repurchased 422,505 shares at an average per share price of US$32.05 in the first quarter of 2009, returning around US$13.5 million to the shareholders. However, around 56% or US$7.5 million were sold by directors of the company. Just to reemphasize the point we have already made earlier, the management has repurchased US$420.7 million of common stock since April 1999 while the share price remained around the US$30-US$35 level.
  • Net cash from operating activities soared 42.4% to US$29.7 million in 1Q 09 from US$20.8 million in 2008. A fall in income tax payment of US$5.4 million positively impacted the operating cash of the company in the first quarter of 2009. This is not an economic increase in operating earnings!
As I mentioned earlier, we are further digging into finding more about the FTC investigation.