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Rufus D  

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  • Small Is Still Beautiful [View article]
    It has never been easier to vet and invest in small cap stocks and startups due to the rise of investment crowdfunding platforms like AngelList and EquityNet. Wall Street has ignored this segment, so crowdfunding is about to reinvent it in a whole new way. Extensive due diligence is key for these small caps, and now investors can to that online with the investor disclosures and business information that is readily available. And soon, when Reg A+ becomes active next month, there will be secondary markets (replacing Wall Street) for these securities, and both retail and accredited investors will be able to participate. Don't buy small cap securities from wall street, buy them from the company directly with crowdfunding.
    Apr 24, 2015. 02:13 PM | 1 Like Like |Link to Comment
  • The Private Market's Reality Distortion Field [View article]
    Well said. One other key point: private investment rounds benefit the company, because most of the new money goes into their coffers (although some earlier round investors sometimes can exit during the private rounds too). After the IPO, the public markets are nothing but a big secondary market, with traders trying to guess how much other traders will pay. If you buy Apple stock, Apple gets nothing, and that doesn't help Apple grow. But a private placement does.

    As you describe so well here, the traditional public market institutional investors have recognized the ROI problem with the public markets and have started to go more and more into private placement. The public market retail investors are being targeted as the last sucker in line for this pump and dump scam around these unicorn companies.
    Apr 20, 2015. 11:10 AM | Likes Like |Link to Comment
  • Google: Why YouTube Needs Ads-Free Premium Subscription [View article]
    AdBlockPlus works fine, I use it on Firefox and Chrome. If you want to see the difference, just look at some of your favorite pages using Internet Explorer without AdBlockPlus, and Chrome with it. The difference is often astounding, much easier to find what you want without all the ad noise. You can also view or click on the little AdBlockPlus Stop sign on your browser bar and see exactly how many ads are being blocked on a page. For example, on this Seeking Alpha page, 8 ads are blocked right now. This is a great technology, highly recommended. Google's one trick pony advertising revenue stream is going to be toast soon, and not just on youtube.
    Apr 19, 2015. 07:19 PM | Likes Like |Link to Comment
  • Amazon Dash Could Be Big For Brands [View article]
    Circa 1981. Reporter: So what will people use these computer gizmos for? IBM: Well, you can keep your recipes on them. Circa 2015. Reporter: So what will people use these Internet of Things gizmos for? Amazon: Well, you can order stuff for your recipes on them.
    Apr 3, 2015. 01:15 AM | Likes Like |Link to Comment
  • Gold - Hello Inflation, My Old Friend [View article]
    I like the Simon and Garfunkel reference in the title, from The Sounds of Silence, 'Hello darkness my old friend...'
    Mar 25, 2015. 11:51 AM | 3 Likes Like |Link to Comment
  • Lending Club: The Marriage Of Technology And Financing Offers The Opportunity For A Significant Return [View article]
    Hello Hunter, this is an excellent analysis of Lending Club, thanks for posting. You are 100% correct that the proprietary credit rating system is the core value of the company. For the first several years, they struggled with analyzing the big data and making the grading system consistent, but once they were able to do that, everything took off like a rocket. That is why even the banks now want to use LC to find, rate, approve, and service loans. Amazing! This company represents one of the biggest disruption trends in the financial technology space, and they are well positioned to continue as a big winner.
    Jan 18, 2015. 05:58 PM | 4 Likes Like |Link to Comment
  • The Death Of Banking: A LendingClub Story [View article]
    Good post. I agree, buy the loans, not the stock. Also Lending Club will still not be able to operate in multiple states where banking regulations restrict them. Nothing to do with going public.
    Dec 16, 2014. 01:56 PM | Likes Like |Link to Comment
  • LendingClub Goes Public: Why It Matters For Investors [View article]
    Several people have responded that they got in at $15 because of the special Direct stock purchase program that Lending Club offered to lending account holders on Lending Club. That pretty much is the definition of an insider: you got a special deal that no retail investor could get, because you were an early investor in the company with your lending dollars. Keep in mind that Lending Club is not allowed to operate in many states depending on banking regulations, so retail investors in those states had no chance to participate in the insider trading deal that others got. So to those few who got the stock directly at the pre-market price of $15, I say congratulations, welcome to the pump and dump team.
    Dec 13, 2014. 11:34 AM | Likes Like |Link to Comment
  • LendingClub Goes Public: Why It Matters For Investors [View article]
    Good post. Lending Club is losing money, so it falls under the category of a long list of IPOs lately that are being sold on hype to allow the original investors to bail out at the expense of the retail investors in the public markets. The stock exchanges have become a pump and dump scheme for the inside players to get their money out, and it is working like a champ for them. The IPO price was $15, which was a bribe to all the insider brokerages to go out and pump up the price to retail. The stock opened above $22 and never looked back. Nobody on seeking alpha got a $15 share of Lending Club. The pump and dump hype will continue until all the insiders have exited, and those who come in now will be left holding the (empty) bag. Instead of buying their stock, take some of that money and buy a diversified list of 10 or more loans on Lending Club with various risk ratings. This will reduce your risk while giving good returns.
    Dec 12, 2014. 08:06 AM | Likes Like |Link to Comment
  • What's Wrong With Google? [View article]
    Well said bostonprof, every point you make is right on the money.
    Dec 5, 2014. 10:43 AM | Likes Like |Link to Comment
  • What's Wrong With Google? [View article]
    Google is barely hanging on. They are a one-trick pony, and their terrible management team is catching up to them. Google has consistently devalued software by giving away free versions of valuable software to hurt competitors, and milking their ad-click cash cow to do it. Now that Facebook and many other competitors have figured out better ways to service that advertising market in a mobile world, Google will pay the price. They have no plan B.
    Dec 4, 2014. 02:07 PM | 1 Like Like |Link to Comment
  • ETFReplay.com Portfolio For December [View article]
    After testing on ETF replay yesterday, I found that a 50/50 portfolio of VTI and LQD performs very well across all time periods even without rebalancing since 2008. It outperforms the S&P500 for several of the backtested years, with as expected about half the volatility. We get an even better result if VTI is replaced with VHT. This might make a nice benchmark for comparison to your strategies.
    Dec 2, 2014. 12:10 PM | Likes Like |Link to Comment
  • Rebalancing Of Fixed Asset Allocation Portfolios: How Often? [View article]
    Excellent post, thanks. Please post more on adaptive momentum strategies when you have time.
    Nov 27, 2014. 02:33 PM | 1 Like Like |Link to Comment
  • Intel: My Take On The Intel Investor Meeting [View article]
    Thanks for the excellent summary and commentary.
    Nov 25, 2014. 01:52 PM | Likes Like |Link to Comment
  • VTI Is Still A Buy In 2015 [View article]
    Good post. I agree VTI is the best core holding for any ETF strategy.
    Nov 20, 2014. 11:35 AM | 2 Likes Like |Link to Comment
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