The OnlineFinancialSector.com provides proprietary research which is produced by founder Michael Markowski and analyst Thomas Renna, etc. Both Mr. Markowski and Mr. Renna have been cited as experts by the financial media to identify and accurately predict both shorts and longs including CNBC, Fortune Magazine, Forbes, SmartMoney, Inc. Magazine, the Wall Street Journal and Barron’s, etc.
Mr. Markowski has made a career out of successfully predicting “third party verified” bankruptcies and significant share price declines of seemingly healthy public companies. In a September 2007 Equities Magazine article that was written by him he predicted the share price crashes of Lehman Brothers, Bear Stearns and Merrill Lynch, etc. Mr. Renna’s EquitiesResearch.com web site lists more than 25 public companies whose share prices declined by between 50% and 99%.
There is also a record of Mr. Markowski’s recommending significantly undervalued companies (see video http://picks.gfnn.biz) whose share prices exponentially increased in price over relatively short periods of time. Mr. Renna also has a multiple number of recommended companies on his website whose share prices have multiplied.
Mr. Markowski also produces research on the US and global stock markets, economies and the precious metals markets. He published an article “Look Out Below” on October 7, 2008, which predicted the collapse of the Dow and the S&P indices which at the time were above 10,000 and 1,000 respectively. Both indices subsequently declined by more than 30% and reached multi year lows in March of 2009.
Mr. Markowski published an article “SEC’s Lifting of 1933 Non-Solicitation Ban Will Lift Markets 100% Higher” on December 3, 2013. The video “Crowdfunding is Driving Stock Markets to New Highs” which was produced by the OnlineFinancialSector.com supports his thesis that Crowdfunding lifted the US stock market to new highs in 2013. He is also predicting that that it would continue to lift all global stock markets to consecutive new highs for the five years ending in 2018.
The following are the research products that are available on the OnlineFinancialSector.com:
Crowd Boom Research™:
Covers public companies who are in the position to provide the infrastructure for the booming global Crowdfunding Population consisting of crowd members, businesses and funding platforms. It is expected to grow to a potential 4 billion participants by 2018 from 79 million participants at the beginning of 2014.
Perfect Short Research™
Covers Public companies with extremely severe negative cash flow anomalies and who have been identified as Perfect Short Selling opportunities. Companies are trading at the top end of their share price range and share prices of these companies have the potential to decline by more than 50% and as much as 99%.
Dynasty Wealth Research™
Covers private or Pre-IPO companies who are emerging to provide the infrastructure for and the products services to the global Crowdfunding Movement. Companies identified have the potential to increase in price by as much as 100 times between 2014 and 2018. See Emerging Crowdfunding Industries and pre-IPO Members video.
About Perfect Short Research™:
The OnlineFinancialSector.com produces perfect short research on those public companies which Mr. Markowski and/or Mr. Renna have identified as having a high probability of going out of business.
The definition of a "Perfect Short” is essentially the same definition as a “Perfect Storm” that can be found on Wikipedia. Its an expression that describes an event where a rare combination of circumstances will aggravate a situation drastically. The term is also used to describe an actual phenomenon that happens to occur in such a confluence, resulting in an event of unusual magnitude.
Since 2001, Michael Markowski, the founder of OnlineFinancialSector.com and StockDiagnostics.com has witnessed the collapse of many perfect shorts. To be a perfect short a company must have all of the following attributes:
1) Mutual funds and institutions who hold significant equity stakes and a high percentage of the company’s float and
2) Coverage by Wall Street analysts who have buy or hold ratings on the company.
3) Increasing earnings or projections.
4) Increasing revenue or projections.
5) Multiple diagnoses of The EPS Syndrome which is an algorithm that was developed by Mr. Markowski in early 2002.
6) Consecutive quarters of positive earnings and negative cash flow from operations and negative free cash flow.
7) Share liquidity and put and call options which trade on a regulated options exchange such as the CBOE, etc.
8) A flawed business model which is incapable of generating consistent positive cash flow from operations (CFFO).
9) Burgeoning debt and increasing liabilities.
10) A low and declining Market Cap to Total Liabilities ratio.
There is generally a lag time between the date of a perfect short’s last date of being diagnosed with The EPS Syndrome and the severe downturn of a company’s share price or its bankruptcy. Previous companies which had multiple diagnoses of The EPS Syndrome and the other characteristics of a “Perfect Short” before they went into bankruptcy include Astropower and Lehman Brothers. Astropower’s last diagnosis of The EPS Syndrome occurred in March of 2002. It filed for bankruptcy 24 months later in March of 2004. Lehman filed for bankruptcy 15 months after it was last diagnosed as having The EPS Syndrome.
Perfect Short Case Studies:
The first perfect short collapse that witnessed by Mr. Markowski was Suprema Specialties in December of 2001. The company was a fast growing manufacturer of specialty cheeses. In September of 2001 Fortune Magazine ranked it as the 23rd fastest growing public company in the United States. In November 2001, Janney Montgomery Scott was the lead underwriter of a secondary share offering @ $12.75 per share which raised more than $45 million for Suprema Specialties and more than $6 million for its Officers and Directors.
Prior to its December 2001 share price collapse from $13.00 to $.03 per share Suprema had generated 15 consecutive quarterly increases in its earnings per share. Yet it never generated a single quarter of positive operating cash flow throughout its entire history of being a public company.
There were five large mutual funds who owned more than 5% of Suprema when it collapsed into bankruptcy. There was also a consortium of New Jersey Banks who lost more than $250 million on the loans that they made to the company.
The second perfect short collapse that Mr. Markowski witnessed and also recommended that its shares be shorted was Astropower. He discovered it after he completed his development of The EPS Syndrome algorithm in early 2002. When he discovered Astropower its price was over $23 per share. The company at the time had multiple diagnoses of The EPS Syndrome. It had reported positive earnings per share in 19 of its 20 previous quarters. However, it had generated positive cash flow from operations in only 3 of its 20 previous quarters.
Practically every major Wall Street firm had either a buy or hold rating on AstroPower in the summer of 2002 after its price had declined into the teens due to its missing of earnings projections. Included in the list of 18 were Merrill Lynch, Goldman Sachs, J. P. Morgan and Oppenheimer.
Mr. Markowski was arguably Astropower’s harshest critic. From 2002 and until Astropower filed for bankruptcy in February of 2004 he became increasingly emphatic in the quotes that he gave the media that the company was headed for bankruptcy. See links to media articles in which he predicted Astropower’s demise: