Using Veritas to Construct the "Per…

29-04-2017 Hits:71368 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:70311 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:68848 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:71787 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:70098 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:72514 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:42574 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:71109 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:70890 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:71282 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:74568 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:72888 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 was a comment left on a thread that I had to unpublish, and I thought it would be of interest to the BoomBustBloggers:

Hi Reggie,

I just met with an industry analyst on the insurance sector. I found him very informative-his comments were much in line with what you have been saying on your blog although his published work would suggest he was very bullish on the group. I thought they would be of interest to your readers in addition to comments that you may have as to whether he is on target. Much of this you've already said, but it was interesting to hear it for a different perspective as well. He also had important comments on their annuity products that maybe aren't widely known.

Basically, he believes there is significant risk that many firms in the industry will need to raise capital (including HIG and PFG). The simple story is that they are heavily exposed to CRE and the companies have yet to record any losses as other than temporary impairment. The companies are assuming near zero loss expectations on their CRE portfolios, which in this environment is unlikely. Moody's has already moved the companies to negative watch, and a downgrade forthcoming is anticipated. Any downgrade will mean they will have to raise additional capital.

While much of this story is known by the market, and to some extent priced in, the companies also face significant problems with their annuity products. Over the last few years, the insurance companies have been in a escalating war for annuity clients and have written more aggressive policies that guaranteed the customer all the upside with complete downside protection. These products are requiring the insurance companies to have greater amounts of equity backing up the annuities as the guarantees are farther and farther underwater. Some investors recognize this problem and the need for more capital on the equity annuities but the same issue applies to the fixed income annuities. Fixed income annuities made up as much as 30% of total annuity sales for some insurance companies.

He thought there was a decent chance that the insurers would post a good (bullsh*t) quarter this quarter, but by June the situation would most certainly catch up with them as the regulators, ratings agencies, or their accounting firms would require the insurance companies face up to the required write-off and capital needs.

I wanted to pass this on to your readers and of course any input from you is always appreciated. 

  

To continue the conversation on the Life Insurers, please revisit the older opinion if you haven't already:

 

... (graphs, charts etc.)  Multii-meda Presentation (PowerPoint / Video): Reggie Middleton on the Hartford Insurance Group.   ...
Thursday, 01 January 2009

Saturday, 22 November 2008

Saturday, 22 November 2008

 Hartford Insurance Actionable Opinion Note
(Download:Research Reports)
This is an actionable opinion note. Not a full blown forensic analysis, but timely info that I acted on that may be of use.
Saturday, 22 November 2008

Thursday, 06 November 2008

I, unfortunately, have not had the time to perform a full fledged forensic analysis of the PFG but I did have my team do some additional digging and calculation. Here is what we found in the forensic detail (Pro level subscription required) - pdf  Principal Financial Group Actionable Intelligence Note - Pro version 2009-01-15 03:26:26 252.74 Kb For those who do not have the higher level subscription, this is pretty much more of the same in terms of my opinion from the Principal Financial Group Actionable Intelligence Note, just significantly more detail on the forensics side. Again, for those who are very serious about investing in this market, I strongly suggest you upgrade. The nomenclature of the subscription is misleading. It is not for "professionals" per se, it is for people who are serious about their self guided, or managed, investment activities.