Category: Research
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How Wide Is the Equity Risk Premium? [DIRTY DOZEN]
This will all end badly, we’ve not the slightest doubt, and the only question is when. Probably not tomorrow, as we say. But that’s as far out as we’ll go. ~ Alan Abelson, “Up and Down Wall Street,” Barron’s, May 24, 1993 (Dow Jones Industrial Average at 3492) via Niederhoffer’s “Practical Speculation”, chapter “The Cult…
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Capitalizing R&D: Learn What GAAP Fails To Teach You
Last we discussed Accounts Payable and the role they play in cash flow efficiency. We learned that one company’s A/R is another company’s A/P. This week we’re analyzing one of the more complex accounting problems: capitalizing research & development (R&D) costs. We’ll learn the difference between capitalizing vs. expensing, why it matters and how it…
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Unity Software: Breaking Down S-1 Filing
Unity Software released their S-1 filing yesterday morning. I spent the afternoon digging into the filing pulling out what I thought interesting, fascinating and down-right awesome. Here’s the link to the S-1 if you want to follow along at home.The below post is the unrolled version of my earlier Twitter thread. You can find that…
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iS tHE dOLlaR abOUt to cRaSH?
I hate to start this note off with some bad news but… there’s just no way we can ignore the elephant in the room any longer. So here goes…After doing *extensive* research over the last 37-minutes… and when I say extensive, I mean I went DEEP… I probably watched the first 1/13ths of maybe five…
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Apple Is Over FOUR Standard Deviations Overbought! [DIRTY DOZEN]
When once caught in the maelstrom of stock speculation the average man becomes more or less mesmerized, and at critical moments his conservatism, his resolutions and his theories all take flight. Under the discomposing influence of a rapid succession of changing values and alternating impulses he loses his perspective, is incapable of calm reasoning, and…
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Account Payable: What They Are & Why They Matter
Last week we learned about Accounts Receivables (A/R).Also, let us know if there’s one accounting concept you want us to cover. We’d love to tailor it to your specific needs.We’re staying in the balance sheet this week and looking at another type of account. Except this time it’s on the liabilities side of things.This week’s…
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What Is Tik Tok’s ARPU? [DIRTY DOZEN]
It will generally be found that men who are constantly lamenting their ill luck are only reaping the consequences of their own neglect, mismanagement and improvidence, or want of application.~ Samuel Smiles Good morning!In this week’s Dirty Dozen [CHART PACK] we talk about sentiment, the path of relative factor performance following a large spike in…
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Why Yields Are About To Rise [DIRTY DOZEN]
The mind can be a wonderful tool for self-delusion – it was not designed to deal with complexity and nonlinear uncertainties. Counter to the common discourse, more information means more delusions: our detection of false patterns is growing faster and faster as a side effect of modernity and the information age: there is this mismatch…
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(Semi) Weekly Accounting Breakdown: Working Capital
We’ve received a lot of positive feedback on the Cash Flow: It’s All That Matters series. So much so that we thought our readers would like a more regular installment of all things accounting.The goal: Send weekly accounting lessons that you can read in less than five minutes. We know learning about accounting is like…
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Red Violet (RDVT): Asset-Light Spin-off With Long Runway
Business Description: RDVT’s platform (CORE™) stores 1+ trillion data records on nearly every individual in the US. Their data sources include MVA, property, criminal, court, and employee records. The proprietary, cloud-based platform funnels all the records into one, easy-to-query database. RDVT uses this technology in two products: idiCORE (risk management, debt recovery, fraud detection) and…