Founder of Equities Research. Stockdiagnostics Specialist

Founder of Equities Research. Stockdiagnostics Specialist
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Friday, August 12, 2016

Summer 2016 Newsletter

Complimentary     
Summer 2016 Newsletter 
(issued on July 1,2016 to paid subscribers)

Long Picks :
Symbid (SBID) $0.17  (Equity Crowdfunding)
MeetMe,Inc (MEET) $5.33
Sabre Corporation (SABR) $26.79

Short Picks 
Under Armour (UA) $40.13
Titan Machinery (TITN) $ $11.15
NOODLES (NDLS) $9.78
 
top long pick SYMBID









 
 
    



BULLISH:SCALABLE BUSINESS MODEL
(Scalability is the capability of a system, network, or process to handle a growing amount of work, or its potential to be enlarged in order to accommodate that growth)...source: Wikipedia
Symbid (SBID)  is a highly speculative penny stock trading at a market capitalization of approximately $5 million. It is the ONLY publicly traded equity crowdfunding that I know of in the world. In Europe Equity Crowdfunding was legal in 2015 , in the United States Equity Crowdfunding only became legal on May 16,2016.
I expect the Equity Crowdfunding space to get hot on Wall Street and I am speculating the large Investment Banks, like Goldman Sachs, Morgan Stanley, JP Morgan etc, to find businesses that are entering this space and to raise capital in the public markets. I predict the space to get hot similar to the the DOT COM days. Of course only so many companies will succeed , but the industry is large enough for Symbid to continue to grow. 
INSTEAD of waiting for Wall Street to bring out High Valuation Initial Public Offerings, the public can get exposure to the Equity Crowdfunding space now by owning publicly traded Symbid for a mere $0.17 cents.
I have scrubbed SYMBID thoroughly , inside and out and spoke to Management during my due diligence process. Company was listed in the USA on the over the counter bulletin board in February 2014 @ $4.30.
There are less than 40 million shares outstanding and stock is at an all time low.
Company recently raised $550,000 in June and raised millions of dollars through institutional investors in 2015 at $0.50 and $0.25 per share..
This is a stock that i have never spoke about publicly and will not speak about publicly till August 2016. Only subscribers will know about this stock during the month of July.     


August 12,2016         
With ALL MAJOR INDICES Trading at all time Highs at the close of yesterday, I recommend investors to take profits and to hedge their long portfolios by going long these  short oriented ETFs.
DXD
MYY
PSQ
QID
SDS
TWM

Note that Symbid is a very thinly traded micro cap stock and can easily trade to zero or much higher.
Please consult your financial advisor before buying or selling shares of any stock.

Disclaimer.
All Newsletters, published by Equities Research, LLC , does not constitute a recommendation by Equities Research, LLC to buy, sell, hold any security, or to follow any particular trading or investment strategy. Also, the information provided should not be construed as an offer, or a solicitation of an offer, to buy or sell securities. An investor's best course of action must be based upon individual circumstances. EquitiesResearch.com shall not be liable for any damages or costs of any type arising out of or in any way connected with your use of The Newsletters, or any of our services. 

EquitiesResearch.com, its officers and employees may buy and sell any position in the securities or companies mentioned 
Content copyright 2010-2016. Equities Research LLC. All rights reserved

Friday, July 1, 2016

Newsletter Pick Up 31%

Equities Research Newsletter pick Hershey UP 31% vs 1.7% gain for the S&P500.

Equities Research July 1, 2015 Newsletter featured a STRONG BUY  on HERSHEY @ $86.53 (dividend adjusted). 

Hershey closed yesterday @ $113.49, for a gain of $27 in exactly 1 year.
The Standard and Poors 500 index over the same 12 month period rose from 2063.11 to 2098.86 for a gain of 36 points.


Today, Readers should subscribe to Equities Research July 2016 Newsletter available NOW.

I've given plenty of great research in 27 years. My July 2016 pick is best risk/reward that I've ever found.
Order here and forward this to your friends.
SUBSCRIBE FOR JULY

Regards, 
TOMMY
HAPPY 4TH OF JULY EVERYONE


about founder Tom Renna
Contact Tom Renna (908) 477-4796 or thomasrenna@gmail.com


 
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Disclaimer. All Newsletters, published by Equities Research, LLC , does not constitute a recommendation by Equities Research, LLC to buy, sell, hold any security, or to follow any particular trading or investment strategy. Also, the information provided should not be construed as an offer, or a solicitation of an offer, to buy or sell securities. An investor's best course of action must be based upon individual circumstances. EquitiesResearch.com shall not be liable for any damages or costs of any type arising out of or in any way connected with your use of The Newsletters, or any of our services. All readers and subscribers and customers should consult a licensed financial advisor. EquitiesResearch.com, its officers and employees may buy and sell any position in the securities or companies mentioned. Content copyright 2010-2016. Equities Research LLC. All rights reserved

Thursday, June 30, 2016

End of Quarter: Time to Paint the Tape

June 30th is End of Quarter. Mutual Funds and Money Managers are Notorious for MARKING up Stocks, aka Painting the Tape, to increase the asset value of their Equity Positions into the Month end. It is based on tonight's closing prices that many money managers get their fees (percentage of money under management). So, this afternoon is a great time to Sell into the Inflated Prices and to even Short stocks, especially with the 3 day holiday weekend approaching.

#EquitiesResearch: ORDER Equities Research Newsletter & Research

Wednesday, April 27, 2016

Related Party Transactions Appear to Be Slippery

Titan Machinery (NASDAQ: TITN $12.93)  recently filed annual audited financial statements for FY2016 10K which ended on January 31,2016. Titan today filed their Definitive 14 proxy statement with the Securities and Exchange Commission for its upcoming June Shareholder meeting.
(4 of 8 directors that sat on Board from last May 2015 have now resigned according to latest 10K, including the founder of company who also quit as the president without any explanation, No new president has been named since he quit as president in June 2015.)

TITN stock has sky rocketed UP 62% from $8 on February 11th to $12.93 in 10 weeks. A Penny Stock Brokerage Firm out of Minnesota , FELTL,has said after the company reported over a (-$30 Million) Loss for the 2nd consecutive FY that the stock could "easily" go to $40 as reported by Dow Jones on the morning of March 18th when shares had one of top volume days of the year. IN November FELTL estimated that TITAN would have net income of $20 Million in FY2017, Titan said on CC that they would NOT be profitable in FY17.


Normally a Definitive proxy filing would be a run of the mill cookie cutter disclosure naming directors and small proposals up for a vote that are usually insignificant, but not when it involves  Titan Machinery!

Equities Research first raised a red flag on the issuer based on poor fundamentals, specifically a pattern of Cashless Earnings with significant amounts of negative operational cash flow. A further examination learned that the company was no more than a roll up story consisting of mom and pop retailers that the company was financing through the issuance of debt and more debt. But it wasn't until the company filed a PROXY Statement in April of 2013 that it was discovered this company was being financially raped by management's related party transactions.

Today we won't discuss the DEF 14 filed in April 2013 that the Securities and Exchange Commission  Division of Corporate Finance spent 8 months exchanging comment letters on with the company.

Today we won't discuss the Proxy Proposal that was voted down by the Shareholders in June 2013.

Today we won't discuss the DEF 14 filed in 2015 when the Company asked for shareholders to give their proxy vote to the President of the company only to have the President suddenly resign from the company (3 days after the filing) without updating the DEF14. (Company has still not disclosed why the founder resigned from the board, stepped down as president and left the company. The company has not had a president since June 2015. Severance Agreement has been disclosed.)

OWNER (& Spouse) of a Titan Machinery Related Party, Charged with 29 FELONY TAX CRIMES

In 2012 the Minnesota Department of Revenue Charged the owner of C.I. Construction with 21 felonytax crimes.
Since the charge, C.I. Construction has generated revenue of $13 million directly from Titan Machinery. (prior to the charge we are to believe that C.I. Construction did not do any business with Titan)




MAY 2013 Titan Machinery for the First time Included C.I. Construction as a Related Party
Its peculiar that C.I. Construction was not disclosed as Related Party prior to 2013 considering Titan Machinery grew from 2 stores to 100 stores over that time span.
Here is A Video from YouTube that CI CONSTRUCTION advertises for the work they did for Titan Machinery in FY2012. But there was NEVER ANY DISCLOSURE OF THIS RELATED PARTY DEAL IN SEC FILING FY2012.
Fact is C I Construction was a related party with Titan prior to FY2013 but there was no disclosure.
http://articles.aberdeennews.com/2011-10-21/farmforum/30308885_1_titan-machinery-case-ih-storage-building



           
Today we will shed light on the RELATED PARTY TRANSACTION  that the company discloses with a construction company which is also a reseller of the company's products.
The company discloses in their filings that the contractor, C.I. Construction, owner is a brother in law of two brothers that founded TITAN MACHINERY and sit on the board. (one brother is the president who recently resigned and the other who also is the investment banker to Titan still sits on the board.)

C I Construction is disclosed in SEC filings as a RELATED PARTY because the Owner, Rob Thompson, is the (3) brother in law of the two founders (directors) and the Treasurer of the company.

C.I.CONSTRUCTION (RELATED PARTY) Received the following Payouts:
FY2013: $6.7 Million
FY2014: $3.9 Million
FY2015: $1.9 Million
FY2016: $0.5 Million 
total 4 years: $13 Million
In the past year C.I. advertises on their website they are building 2 of the biggest projects in the history of Titan and its peculiar that they ONLY earned $500K in FY2016? hmmm





Ted Christensen is the treasurer of Titan Machinery but is also listed as an officer of C.I.Construction.
TITAN Disclosure (Ted Christianson is our Treasurer and Vice President, Finance. He joined Titan in 2003 and is responsible in his senior financial role to secure access to capital both domestically and internationally as well as managing overall financial risk.)
  

Ted Christensen is also listed as an officer of Dealer Sites, LLC which is also disclosed as a RELATED PARTY of TITAN MACHINERY. DEALER SITES is an entity that many of the Management of TITAN have an EQUITY INTEREST (Christensen family members and the Chairman of TITAN, David Meyer.) Dealer Sites has recently disclosed it has increased contracts with DEALER SITES from under $50 Million to over $100 Million.

IT GETS MORE BIZZARE. IS C.I.Construction and Dealer Sites one in the same? According to this TAX document , YES. And this GOVERNMENT Document too. C.I CONSTRUCTION shares the Same Address of DEALER SITES on certain other Documents with Ted Christensen as the contact person.


Another RELATED PARTY DISCLOSURE in Titan Machinery Disclosure  is C.I. FARM POWER refers to a company owned by company's founder , Peter Christensen who recently Suddenly stepped down as a Board Member and resigned from company.
THERE is no disclosure whether C.I.FARM POWER is related to C.I. Construction. I am assuming that C.I. in the Farm Power company and the C.I. Construction are both created from Christensen Incorporated.
In 2011 when Peter Christensen disclosed in his sale of 200,000 shares of stock @ $27.80 the position that he sold was shares of C.I. Farm Power.

According to this Article: C.I. stands for Christenson Incorporated and is owned by ROB THOMPSON and PETER CHRISTENSON.  But there is NO DISCLOSURE in SEC Filings pertaining to Thompson owning CI Farm Power nor Christenson owning CI CONSTRUCTION.

  • "Earl Christianson became the sole owner of Christianson’s Inc. and, Earl’s son Peter and son-in-law Rob Thompson are assuming leadership positions in what has become a three-generation family business" 





2016    Construction Management Services Performed by C.I. Construction, LLC
C.I. Construction, LLC ("CI"), performs construction management services for certain of the Company's new store construction projects, shop additions, and remodel projects. CI is owned by Rob Thompson, who is the brother-in-law of Peter Christianson (our former President and former member of our Board of Directors) and of Tony Christianson (a member of our Board of Directors). CI performs construction management services including developing designs/specifications and drawings, preparing bid packages, advising on the selection of suppliers and contractors, and overseeing the construction process. CI is also an authorized reseller of certain steel buildings that the Company frequently incorporates into its construction projects.
CI receives a fee equal to 4.5% of the construction costs, excluding expenditures for certain fixtures and fixed assets that the Company originates. CI is also reimbursed for the labor costs of CI's site supervisors and on-site staff, and utilities, equipment rental, travel, and other direct costs incurred by CI in performing the services. CI also receives payment as a reseller of the steel buildings used in certain of our construction projects. We are not obligated to retain CI on an ongoing basis, and this decision will be made for each project based on the best interests of the Company. During fiscal 2016, CI received an aggregate amount of $474,717 in direct or indirect payments from the Company for the performance of construction-related services and the purchase of steel buildings, as well as reimbursement for other construction-related costs.
2015  Construction Management Services Performed by C.I. Construction, LLC

C.I. Construction, LLC, ("CI") performs construction management services for certain of the Company's new store construction projects, shop additions, and remodel projects. CI is owned by Rob Thompson, who is the brother-in-law of Tony Christianson (a member of our Board of Directors) and Peter Christianson (a member of our Board of Directors and our President). CI performs construction management services including developing designs/specifications and drawings, preparing bid pack ages, advising on the selection of suppliers and contractors, and overseeing the construction process. CI is also an authorized reseller of certain steel buildings that the Company frequently incorporates into its construction projects.

CI receives a fee equal to 4.5% of the construction costs, excluding expenditures for certain fixtures and fixed assets that the Company originates. CI is also reimbursed for the labor costs of CI's site supervisors and on-site staff, and utilities, equipment rental, travel, and other direct costs incurred by CI in performing the services. CI also receives payment as a reseller of the steel buildings used in certain of our construction projects. We are not obligated to retain CI on an ongoing basis, and this decision is made for each project based on the best interests of the Company. At times, we have utilized a competitive bidding process for construction management services.

During fiscal 2014, CI received an aggregate amount of $3.9 million in direct or indirect payments from the Company for the performance of construction-related services and the  purchase of steel buildings, as well as reimbursement for other construction-related costs. We do not believe the terms of any of the transactions and agreements described above are any less favorable to us than could be obtained in an arm's length transaction with an unrelated party.



CLIFF NOTES (include)

  • INFLATED ASSETS AND UNDERSTATED LOSSES
  • INSIDER SELLING
  • INSIDER TRADING BEFORE NEWS
  • RELATED PARTY TRANSACTIONS
  • SEC COMMENT LETTERS
  • Auditor Sudden Resignation
  • RELATED PARTY TRANSACTIONS










Wednesday, March 30, 2016

Berkshire Hathaway 2016 Shareholder Letter

FEBRUARY 27,2016 

So Sad to read this, but it's reality

"There is, however, one clear, present and enduring danger to Berkshire against which Charlie and I are powerless. That threat to Berkshire is also the major threat our citizenry faces: a “successful” (as defined by the aggressor) cyber, biological, nuclear or chemical attack on the United States. That is a risk Berkshire shares with all of American business.
The probability of such mass destruction in any given year is likely very small. It’s been more than 70 years since I delivered a Washington Post newspaper headlining the fact that the United States had dropped the first atomic bomb. Subsequently, we’ve had a few close calls but avoided catastrophic destruction. We can thank our government – and luck! – for this result.
Nevertheless, what’s a small probability in a short period approaches certainty in the longer run. (If there is only one chance in thirty of an event occurring in a given year, the likelihood of it occurring at least once in a century is 96.6%.) The added bad news is that there will forever be people and organizations and perhaps even nations that would like to inflict maximum damage on our country. Their means of doing so have increased exponentially during my lifetime. “Innovation” has its dark side.
There is no way for American corporations or their investors to shed this risk. If an event occurs in the U.S. that leads to mass devastation, the value of all equity investments will almost certainly be decimated.
No one knows what “the day after” will look like. I think, however, that Einstein’s 1949 appraisal remains apt: “I know not with what weapons World War III will be fought, but World War IV will be fought with sticks and stones.” 

Berkshire Hathaway Profited On ENRON BONDS

FEBRUARY 28,2007 Berkshire Hathaway Shareholder Letter


"We continue, however, to need “elephants” in order for us to use Berkshire’s flood of incoming
cash. Charlie and I must therefore ignore the pursuit of mice and focus our acquisition efforts on much bigger game.
Our exemplar is the older man who crashed his grocery cart into that of a much younger fellow while both were shopping. The elderly man explained apologetically that he had lost track of his wife and was preoccupied searching for her. His new acquaintance said that by coincidence his wife had also wandered off and suggested that it might be more efficient if they jointly looked for the two women. Agreeing, the older man asked his new companion what his wife looked like. “She’s a gorgeous blonde,” the fellow answered, “with a body that would cause a bishop to go through a stained glass window, and she’s wearing tight white shorts. How about yours?” The senior citizen wasted no words: “Forget her, we’ll look for yours.” 


"in 2002-2003 we spent about $82 million buying – of all things – Enron bonds, some of which were denominated in Euros. Already we’ve received distributions of $179 million from these bonds, and our remaining stake is worth $173 million. That means our overall gain is $270 million, part of which came from the appreciation of the Euro that took place after our bond purchase. "


"Already the prediction I made last year about one fall-out from our spending binge has come true: The “investment income” account of our country – positive in every previous year since 1915 – turned negative in 2006. Foreigners now earn more on their U.S. investments than we do on our investments abroad. In effect, we’ve used up our bank account and turned to our credit card. And, like everyone who gets in hock, the U.S. will now experience “reverse compounding” as we pay ever-increasing amounts of interest on interest. "


"I want to emphasize that even though our course is unwise, Americans will live better ten or twenty years from now than they do today. Per-capita wealth will increase. But our citizens will also be forced every year to ship a significant portion of their current production abroad merely to service the cost of our huge debtor position. It won’t be pleasant to work part of each day to pay for the over-consumption of your ancestors. I believe that at some point in the future U.S. workers and voters will find this annual “tribute” so onerous that there will be a severe political backlash. How that will play out in markets is impossible to predict – but to expect a “soft landing” seems like wishful thinking."
  

"Over time, markets will do extraordinary, even bizarre, things. A single, big mistake could wipe out a long string of successes. We therefore need someone genetically programmed to recognize and avoid serious risks, including those never before encountered. Certain perils that lurk in investment strategies cannot be spotted by use of the models commonly employed today by financial institutions." 



Warren E. Buffett Chairman of the Board 
Berkshire Hathaway Shareholder letter 

Thursday, March 17, 2016

After Close: Titan Machinery Unexpectedly Pre Announces FY2016 Warning

  •  Expects FY2016 Sales Decline of $500 Million (-28%)
  • Expects Net Income  FY2016 Loss of ($37 Million) down from Fy2015 Loss of ($31 Million) 

Titan Machinery (NASDAQ: $12.50) is trading down significantly after hours after the company pre announced FY2016 Q4 and Year End Financials for the period ending January 31,2016. 
8K here
 

In March 2015 Titan Machinery Pre Announced FY2015 Financials and the stock was HALTED!

March 2015 FY2015 Pre Announcement:
GAAP net loss attributable to common stockholders for fiscal 2015 is expected to be in the range of $30.9 million to $32.0 million, or $1.48 to $1.53 per diluted share.  vs 
Adjusted net income attributable to common stockholders forfiscal 2014 was $16.5 million, or $0.78 per diluted share"


March 17,2016 FY2016

  • For the fourth quarter of fiscal 2016, revenue is expected to be approximately $335 million compared to revenue of $490.7 million in the fourth quarter last year.
  • Q4 the Company recorded an inventory impairment charge of approximately $27 million, or $0.77 per diluted share, related to the expanded equipment inventory reduction plan

  • Pre-tax loss for the fourth quarter of fiscal 2016 is expected to be approximately $53 million, compared to loss of $37.2 million in the fourth quarter last year.
  •  Pre-tax loss for the fourth quarter of fiscal 2016 included the $27 million impact from the equipment inventory impairment charges as well as a $6.7 million impairment charge related to long-lived assets. 
  • Pre-tax loss for the fourth quarter of fiscal 2015 included non-cash impairment charges of $31.0 million primarily related to goodwill and other intangible assets within the Agriculture segment. 
  • Total Company: Loss of $45 million, which includes equipment inventory impairment charges of approximately $27 million, compared to loss of $5.0 million for the fourth quarter last year. 

    Net loss attributable to common stockholders for the fourth quarter of fiscal 2016 is expected to be approximately $34 million, or $1.62 per diluted share, compared to net loss of $27.0 million or $1.28 per diluted share for the fourth quarter last year. Excluding all non-GAAP adjustments, adjusted net loss attributable to common stockholders for the fourth quarter of fiscal 2016 is expected to be approximately $28 million, or $1.31 per diluted share, compared to adjusted net loss of $4.1 million or $0.20 per diluted share for the fourth quarter last year.


    Preliminary Fiscal 2016 Full Year Results



    For the full year ended January 31, 2016, revenue is expected to be approximately $1.37 billion compared to $1.90 billion last year. GAAP net loss attributable to common stockholders for fiscal 2016 is expected to be approximately $37 million, or $1.76 per diluted share, compared to net loss of $31.6 million or $1.51 per diluted share last year. Adjusted net loss attributable to common stockholders for fiscal 2016 is expected to be approximately $26.5 million, or $1.25 to per diluted share, compared to adjusted net loss of $1.9 million, or $0.09 per diluted share, last year.


Equities Research Warned @ $30 

Sunday, December 13, 2015