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Harm Elderman
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I'm currently a travelling risk consultant in Europe. As a former algo-developer, I have over 10 years of experience in trading in a variety of products. Ranging from CFD's (contract for differences) to options and equities with a variety of brokers. I have worked in a variety of financial... More
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  • Is There A Relation Between Seeking Alpha Followers And The Return Of S&P500 Stocks?

    As I wrote earlier in my previous instablog about the relationship between Seeking Alpha followers and DJ30 stock YTD returns it seemed that the stocks with fewer followers yielded a better YTD performance. From a theoretical and academicals perspective, that makes sense. This, as small stocks often outperform large stock, which has been proven many times in a variety of academic articles. So what about the S&P500?

    I hereby post a sample of the first 100 stocks of the S&P500 (on alphabetical order) ranked on Seeking Alpha followers and YTD returns.

    The YTD return of the top 50 followed stocks on SA average around 50% while the YTD return of the least 50 followed stocks average around 200%.

    Apr 05 6:26 PM | Link | 3 Comments
  • Does The Amount Of Seeking Alpha Followers Relate To Better YTD Returns?

    Popularity and swinging stock returns often go hand in hand. Nevertheless, it's rather questionable if popularity also attributes to actual positive returns, rather than significant positive or negative returns.

    A short look on the amount of followers of the DJ30 companies on Seeking Alpha sheds an interesting light on this.

    First of all, the difference in amount of followers per stock on the DJ30 is immensely different. Interestingly enough, the top 15 followed firm's yield -3.39% YTD return (out of top 15 followed stocks, only 4 have a positive YTD). This, while the 15 least followed firms have an average of 2.43% YTD return (9 out of 15 stocks have a positive YTD).

    Apr 03 5:33 PM | Link | 1 Comment
  • There Is Nothing Unique About Unique Pizza's And Subs Corporation

    Sometimes it is worth it to delve into the pit of OTC penny stocks. Although too little for submission on SA, worthy of sometimes having a peek as every large multinational at some point, began at someone garage or student room. Today I will cover one which is being run from the living room, called: "Unique Pizza and Subs Corporation (OTCPK:UPZS)".

    This is a firm which grants persons or qualified entities the right to establish a food facility under the operation and trademarks of "Unique Pizza and Subs". This could be either take away or sit in related facilities. Flexibility is achievable.

    Considering the restaurant business in America has many behemoth giants, what's this little pizza chain worth? Any chance on a potential take over?

    This instablog will delve into the fundamentals of Unique Pizza and the way forward in the future.

    Fundamentals

    Not too long ago, the firm published its annual results. It's worth taking a further look into this document.

    Amount of employees

    (click to enlarge)

    Source: Annual Results

    The amount of employees is relatively small with only 8 part time employees and no lease costs at all. Salaries are mediocre, but more importantly not being paid since a long time:

    So far in regards of revenue, there is none:

    Operating expenses are relatively high considering the fact the company had nothing on the other side of the balance. The cash position is only around $12.000.

    Net loss was $443,746 in the book year of 2014. The biggest part of this net loss was $367,450 all related to third party consulting fees, which reek a little expensive. With no revenue (nor income) and costs significantly totaling up, I'm uncertain what the next move for this small firm will be. One would expect senior personnel to step up with their experience (as all 4 senior management personnel has the experience in the food industry), but so far nothing has been achieved. It is a significant struggle to keep afloat.

    Main Strategy

    (click to enlarge)

    Source: OTC Markets

    The main strategy is loud and clear. The company's mission is to be a leading national franchiser. Unfortunately, after a little bit more digging, I came to realize that the firm has made significant statements year after year and was never able to actual deliver to its words. Not unheard of for any small penny stock. Additionally, the amount of several stock splits has not yielded in its favor either.

    A simple question, what makes this firm better than any other franchiser is difficult to answer. The idea of a cannabis related pizza (and sauce) back last year clearly gave the idea that the firm is hungry for attention. Attention might be able to poise the stock higher which could give management another round to try this 'so far' failed concept of Pizza franchising.

    So where is the potential here?

    As management is clearly losing strength, this firm seems to be a ship without a captain. The question here is whether or not he is still on board but more or less whether he left and is heading back to shore.

    This firm definitely came into the hands of the penny stock investors, and on the basis on that, there is still enough potential to gain during swing trades of this stock. Any news could propel either a positive signal or negative. No matter whether or not the news is positive, that is less relevant.

    Nevertheless, going from zero revenue (and zilch income) to be able to turn the firm to a break-even point will be very difficult in a land shape with so much competition.

    This is clearly a penny stock, considering it's huge volume and low price:

    Conclusion

    I stick to the fundamentals and on the basis of what I've found, I don't see this company exist in its current form within now and 2/3 years. Unless management will really try to turn this ship around, but I have yet to find any reason if they could…

    If they have been struggling since their founding date, I don't see any reason why it would now go better.

    For all the swing traders among us, be careful with this one. News like cannabis pizzas can only be meant for highly speculative stock trading. My advice, hands off if you don't want to burn your fingers.

    Tags: UPZS, Pizza
    Mar 30 3:54 PM | Link | Comment!
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    Apr 5, 2015
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