Lesson: How To Make EASY Money From Earnings Calls; PLUS, A New Pick! — LIVE Today At Noon ET!!

My last LIVE broadcast was cut short before we could discuss my newest investment. Today’s LIVE broadcast will rectify that AND provides a valuable new lesson on professional stock investing — how to make EASY money by listening to a company’s earnings call.
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96 thoughts on “Lesson: How To Make EASY Money From Earnings Calls; PLUS, A New Pick! — LIVE Today At Noon ET!!

  1. Hi Mark, I was in your Live show, but I forgot to ask you this question. In your previous blog, one reader remarked about safe and found and you answered that Sprint will have a tracker? So is this based on Safe and found and is this the wearables that Smith is alluding to? Thank you for taking the time to answer.

    Like

      1. Great! thank you Mark! So that answers the wearables then! Isn’t this a big deal? I was wondering why you have not shared it but in a subtle way, until I caught it and got curious.

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          1. I might have missed it in one of your blogs or videos, have to scour your blogs once again, I know I remember you discussing wearables but never got the idea it would be from Sprint nor did the CC reveal that it was sprint, all said was wearables from a tier 1.

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        1. The old fashioned way. Copy and paste from SEC filings. If copy the whole table properly, it should paste somewhat cleanly. Then, you have to clean it up a bit.

          A little time well worth the effort. Up several $100K so far 😊

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          1. Thank you, Mark,
            I’m totally into the fundamental research, I’m building my own sheets, with attention to the following Q to come.
            But on your broadcast, you build SMSI profit model for years to come.
            How did you do it?

            If you already explain it, can you please send me the right link.

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          2. Off topic, my professional battle rap debut (vs. a scary guy named HallowTip 😱) has been released to Facebook. If you haven’t seen it, it provides drama and laughs 🔥😡🔥😂🔥

            My round starts at the 1 minute mark and only lasts a few minutes, so check it out and give a little feedback!

            Like

  2. Spoke with IT at Sprint who works with Safe and Found engineers. He is confident they are sunsetting Family Locator soon. He also isn’t sure what T-Mobile will decide once they fully take over (whether to keep Smith as a vendor or go with someone else), but this IT contact at Sprint thinks Safe and Found should be around for at least the next 2 years.

    In other news, I am testing the S&F app and it works pretty good. Pretty cool to test a product like this.

    Liked by 3 people

      1. It happened b/c my phone was having a unique problem getting S&F to work (wrong computer code was registered on my phone). I talked with Sprint customer care, who then transferred me to Sprint IT (think this was outsourced overseas), who then had to escalate the issue and create a ticket. Then the American side IT called me (the guys who work directly with Smith). They got my issue resolved (after they had Smith check out the problem) and in the meantime answered some general Q’s (which I listed above). The guy I spoke with said most issues he deals with are consumer education issues.

        WKF, I am more positive now on the legitimacy of the company and stock after speaking with this Sprint IT guy.

        Liked by 2 people

        1. Much more confidence inspiring than looking at a chart or Level II quotes, right?

          Now think about this… 99% of people don’t do what you just did, so they don’t know what you now know. So how can the stock we were supposed to be if nobody does the kind of work you just did (and we accumulate here)?

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          1. Yeah. I do thank your repetitiveness in trying to get a fundamental-approach into our heads. I think your matrix analogy was helpful, but it only clicked when I heard it for the second time (I was replaying your video). It’s funny how slowly people change, but it’s great to have you doing this for people here.

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  3. HMNY just reported the worst earnings imaginable. I believe they lost $132 per share in Q2 and currently has 637 mil shares outstanding. What a train wreck. Bob Visse is still bullish. His denial phase is lasting longer than it should. smh

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    1. “The Company expects to continue to incur net losses and have significant cash outflows for at least the next twelve months.”

      Nothing more needs to be read. As I suspected, they’re unwilling to pivot… they’re accelerating toward the event horizon. Investors / believers be damned 😓

      Like

  4. Re HMNY I also made a public service with my blog https://finesand.wordpress.com/2018/08/14/hmny-dilution-into-non-existence/

    A very serious long strategy with a uber strong balance sheet with NNWC (Net Net Working Capital) > MCAP is GURE,
    which I also cover here lately https://finesand.wordpress.com/tag/gure/
    Yes, a Chinese company, but no British Island or the like and reviewed auditor in US since 2011.
    They lost production in 2017 due to change of regulations, but expected to come back soon:

    “At $1.30/sh, GURE is currently traded at only 29.14% of $4.46/sh NNWC (Net-Net-Working-Capital or Liquidation) value or @ 42.23% of $3.07/sh NNWC value post remaining $65M rectification costs for 2018, insanely cheap especially since bromine production is expected to restart in just days or weeks.”

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    1. I avoid too-cheap-to-be-true non-U.S. companies. There’s usually something untrue about them.

      If it seems TOO easy, there’s usually a reason. Doesn’t mean this one won’t work, but I’ve saved more money than I’ve missed by avoid all stocks with a profile like this.

      Just food for thought…

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      1. “Too cheap to be true”? TEUM comes to mind. The street obviously doesn’t believe that 300 million backlog for that co to have only a 150 mil mkt cap. I’m still trying to figure out the angle on that one.

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          1. I agree here, TEUM’s backlog seems to be already build into the MCAP valuation
            while not being of same quality. Current issue here since merger: OS rose higher than revenue/profits – the share structural change.

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          2. I love TEUM, really got fortunate that I was able to invest in it at .97 last year.
            Their contracts are spread out at 3 years that ranges from 3 mill to 5mil a contract. 70% margins and they are profitable 2Q and starting to convert backlog. Their forward projections with ARTA is very impressive.

            Funny though is that you mentioned in your videos that you tend to avoid co. that are too easy in giving out information and TEUM esp Hal(CEO) is very transparent but so far they have delivered as promised. Im curious as to what your thoughts are with this co.

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          3. If the guy has established a track record for delivering on everything he says, I’m all for it.

            Among professionals, that’s called an “investor-friendly straight-shooter who executes”.

            Guys like that are almost always good to put your money behind.

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          4. From their Q2 report: “Gross profit for the six months ending June 30, 2018 was $7.1 million, resulting in a gross margin of 70.6%, compared to $4.2 million and 70.4% for the six months ending June 30, 2017.”

            Maybe the problem is they have a huge backlog but only booked 6 mil in Q2 revenue? They obviously do not have much street credibility to be sitting with a mkt cap of 150 mil. This would be an interesting one for you to check into imo. Pretty intriguing to me.

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          5. I don’t like it. Too many yellow flags and no way for me (personally) to gain an advantage in terms of information or industry expertise.

            Nothing against the company. I’m just narrowly-focused like that. Too many fish in the sea to be going after the difficult ones.

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        1. To add to your post, look at TPC (Tudor Perini) stock ~$20, BV over $36, they have booked (Signed) backlog of ~$4b which is 1 full year of business, on their last CC they said their biggest problem, they can’t sign much more business because they don’t have the manpower to do the work, a very high-end problem to have. I won’t try to sell it to you but may be worth taking a look.

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      2. Thank you – I have addressed this in my blogs of course, surely nothing for free in the market.
        Don’t want to spam/duplicate whole reason here, but indeed when scanning for NNWC > MCAP,
        I heave a lot of DD on my plate because there is always a reason and rarely an opportunity 😉

        In this case, GURE looks OK – but may the interested reader debate such details here or over there,
        which is the whole purpose of our free & open research and debate – finding value.

        Like

      3. I’m going to second this. I was in and out of Chinese RTO’s and other china stocks in 2011-2014 and essentially none of them were priced “fairly” according to normal metrics. They all trade at something like a 50% discount. Some got bought out, others got delisted, but none were worth the constant missed opportunities caused by waiting for a fair valuation.

        FWIW, the stocks that I can remember which were all audited by big firms (KPMG or something) were YONG, HOGS, and CXDC.

        Liked by 1 person

        1. Having a proper US auditor is essential for foreign companies indeed, yes, GURE has one since 2011 which also got a flawless review from PCAOB.
          The China discount you mention is well known indeed – I am not even waiting for a proper P/E 10 here, I am too old for that 🙂
          Company got short attacked in 2011 by Kerrisdale and the lawsuits got settled in 2014, very slow process – no guilt and yes, the financials were proven to be correct – no restated 10-K.
          Actually this is a US company registered in Delaware operating in China, no British Virgin Island play – I am aware of all these tricks 😉
          So what I am waiting for there? At the production kick-off and at least $2 re-test, my PT-1 more is possible. I elaborated on their chart, whenever they were about to recover to cross $2 for good, bad news happened.

          So here you have it, not too good to be true, but the usual natural caused of low valuation, making it a value play with an attached growth play when they restart production.
          Actually quite similar to SMSI, kicking for growth with their new carrier covered software service – but GURE has much more cash than they can spend, so w/o the offerings – but a Chinese player instead.
          Every up has its down, nothing is too easy in these markets 😉

          This is the short form of the story, more in my 3 articles as mentioned above.

          Like

  5. Hi, Mark. I watch your new video and am interested in what you talked about one of GAIA’s contributor goes away. I’d like to read the report as an exercise to analyze the stock and to know the important information source, but I can’t find it on the Aug. 6 transcript. Am I so careless? Could you or anybody tell me the info source?

    Best Regards,

    Robert

    Like

    1. Simple… just Google gaia contributor leaving. Should be among the first hits. #research

      It wasn’t specifically discussed on the call. Mgt simply alluded to it, saying “there’s no group of titles such as series of collection representing the primary viewing for more the 2% to 3% of our members.” (blame the transcriber for the typos).

      Like

    1. They like banking business, so I wouldn’t trust their research, but it doesn’t mean it’s bad. I have nothing against them or their people. I’ve had an informal relationship with them in the past. Just haven’t had time to keep up with it.

      Ultimately, I don’t trust anybody’s research except my own.

      Why?

      Liked by 1 person

      1. A company I have been following just contracted with Roth for “Strategic Review.” With my bad experience with Wall Street bankers, I’m assuming this is not a good move, but that is just my opinion which means…zero. So I should have phrased my original question as what is strategic review?

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  6. One thing Mark, I liked your written blogs. Recently you moved to video only, sadly – b/c watching videos is more time consuming. Any chance you move back to writing or maybe doing a 50/50? Thank you 🙂

    Liked by 1 person

    1. I think it depends on the content. Theses and operating models are better off written. Q&A obviously better on video. Either way, I’m in Europe and not exactly itching to sit in front of the computer all day 😉

      Liked by 1 person

    1. I don’t do Chinese companies. Too hard to gain an information / expertise ADVANTAGE over other investors when the company is based halfway around the world.

      Plenty of better fish in the U.S. sea, NO MATTER WHAT THEY DO.

      Like

  7. Hi Mark, what do you think of INUV? I started a position there, i read their latest CC and sounded very bullish. They margins are up to 61%, just raised cash, seems to be the bottom now, Yahoo and Google are customers and their intentKey software seems like a game changer, not a whole lot of follow this co and insiders are buying(good indication as you stated) could be an advantage for you and eveyrone here as q3 and q4 are traditionally their strong qtrs

    Like

  8. Hi Mark, this stock requires patience! They are working on several strategic initiatives. How close do you think we are to the next initiative / carrier / acquisition being announced?

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    1. You said it yourself… patience!

      I have no idea how close they are to getting anything. How would I without insider information?

      People need to relax. I probably have the largest position of anybody who participates on these boards, and yet I seem to be least antsy (or curious about the next thing that is going to happen).

      The longer the stock stays down, the cheaper it will be when something big hits. Personally, I like seeing the stock down here, because of something big hits we will be able to buy the move more effectively.

      Like

        1. That might be true. Hard for me to know if it’s experience or money.

          One thing is for sure… if I could go back in time, I would tell my younger self to be more patient. I will be a lot richer now if I was.

          Liked by 1 person

          1. I can’t believe 10k doubled every year is 1 million in 7 years. all these people chasing doubles on a monthly basis and look what a double in your account once a year will do.

            Liked by 1 person

  9. Read this today:

    “Phones can also be used as trackers. AT&T’s Family Map, Sprint’s Safe & Found, T-Mobile’s Family Mode, and Verizon’s Family Locator service all let parents sign up to locate their kids’ phones, wherever they may be. Both Android phones and iPhones have a “find my phone” option that can tell a parent where the device is at any given time. The third-party Life360 is my favorite installable app for keeping families in touch; it also includes family messaging, and it’s cheaper than the subscription options from the carriers.”

    https://www.pcmag.com/roundup/362044/the-best-tracking-devices-for-kids

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    1. Yup. That’s well known among folks who have researched the products. I’ve tested Safe & Found with multiple families and that’s a BIG part of what they love about it (along with the parental app controls).

      The products are ALL selling well. It’s not about competition. Everyone with a winning product is winning. Thankfully SMSI is among them and has an advantage when it comes to winning partnerships with carriers.

      Thanks for sharing the info! 👍🏼

      Like

  10. Mark, I see diogenises posted yesterday on YAHOO that August downloads so far are 15,000 so far this month. Someone thought they might be topping out on Sprint or do you think August is just a bad month in general with so many people on holiday that they might be signing less customers?

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    1. If I may chime in here…….Eric, I have not been able to find any FREE website that provides an accurate tally of daily downloads….you have to PAY for that data and Diogenises has admitted he is using only the FREE capabilities that these sites offer. He is basing his tally on the ratio of the total number of monthly reviews against the overall rankings. There are many bogus reviews on these sites and this is a very poor and extremely inaccurate way of extrapolating the data. I’m of the opinion that every time he posts HIS data he should post some kind of warning to the readers on the Yahoo message board they methodology of how he gets the data as this is very very misleading to those who don’t investigate his numbers.

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      1. Mirdad,
        I saw the post you are talking about and agree with you. Mark also commented not to trust all the data from Diogenesis as it might not be accurate and this proves he is right.
        Thanks
        Eric

        Liked by 1 person

        1. Diogenes just sent me the following link:
          https://apptopia.com/search/view-all?assets%5B%5D=apps&store%5B%5D=google_play&category_id%5B%5D=18&kind%5B%5D=free&kind%5B%5D=paid&by=name&term=sprint+safe+&+found=
          It shows last 30 day downloads at 35K for Safe & Found. Noteworthy is the old legacy product of Sprint Family Locator is only 8.1K downloads. In problem is I can’t find out where in the left hand margin of the website where they provide this data. If I didn’t get this exact link that shows the exact data I still wouldn’t be able to find it. Strange……hmmm….so I’m assuming the data from this link is really the last 30 days. I’ll keep running the link every day or so to see if it gets updated and will let you know.

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    1. That’s a fact! And you don’t know the half of it. There are a lot of places surrounding Madrid that are incredible, including some that are not even on a map. 🔥🔥🔥

      Catch you guys on YouTube at 12:30!

      Like

  11. Mirdad, the 35,000 downloads is greater than the 15,000 he posted the other day. I believe the site you sent should be more accurate than what Diogenes assumed.

    Liked by 1 person

    1. MUCH. Again, I have a great deal of respect for his efforts, but there is NOTHING useful about the review data, good or bad. I figured that out the hard way. His efforts there are wasted, as were mine at the time.

      Like

          1. Mark – I am having a memory lapse here but as I recall the FL app did not work in iOS or was not supported by iOS or something like that. Is there any legacy FL in iOS?

            Like

  12. Here is a link to reviews for the iOS downloads that I think are still useful. Customers seem a lot more happier on the iOS side giving Safe & Found a whopping 4.0 out of 5.0 approval rating. I’m of the opinion that a lot of the bad reviews for Safe & Found from the Android side were from lazy and/or technologically inept reviewers who don’t want to embrace the change over to Safe & Found. Also, not to forget that many of them are bogus.

    Like

    1. That’s a “fair” way to approach it, but separating real from bogus is challenging. Then, getting a good sample size (literally 5,000 reviews to be as representative as 200 store checks) is impossible. Still, what you did is better than most…

      But I don’t understand why people rely on reviews when you can TEST THE PRODUCT FOR YOURSELF! 😂

      Investing 101 🤦🏻‍♂️

      p.s. No offense Mirdad. You know I respect you. Just trying to set the example for newer investors. If you want millions, don’t be lazy.

      There’s a reason why only a few people pull 7+ figures per year. You can be one or not be one. It’s more of a choice than most people know. Take it from someone who used to earn and live on about $300 per month. 🙏🏼🙏🏼🙏🏼

      All it required was doing things the right way. NOT fun, but SOOOOOOO worth the result, 😍😎😍😎😍

      Liked by 1 person

  13. Sprint doesn’t have good coverage in my area and I don’t know anyone who has Sprint including my relatives and friends all over the nation. I agree with most of what you said about the reviews, but I was merely pointing out the difference in reviews from NEW iOS users and Android users. I wasn’t trying to extrapolate any of the data to calculate downloads as that would be totally inaccurate. Even though there isn’t a ton of reviews on the iOS side, IMO, there are enough to show a significant difference in how they like the product versus the Android side. That tells me the vast amount of complaints on the Android side is due to user error, laziness, and close minded to Safe & Found. IMO, this is good news for investors as it’s a useful data point for those of us who don’t have the ability to try the product. So, yes I agree the BEST way to see how well the product works is by trying it yourself………if you can do it.

    Like

    1. Good response. Just be careful with those reviews, because there is no way of knowing which ones are real or fake… and that applies to the positive ones as well as the negative ones.

      I provided my experience with the product awhile back. As a long time software analyst, I can tell you that it is well architected, has a very intuitive user interface, and is unlikely to be viewed negatively by more than a MINUSCULE percentage of people who interact with it.

      Sprint loves the product and sees it as a platform for future growth and new features/services.

      I find it hard to believe that other carriers will not see it the same way. Thus, my SMSI operating model only represents the tip of the iceberg of what could be on the horizon for this company IMHO. There are many carriers for them to sell this product into… and they have only just proven it’s worth via the successful rollout / growth at Sprint.

      That doesn’t guarantee success, but if I had 10 opportunities like this one I would have 100% of my $$$ invested in those 10 names and make a KILLING on the basket. Done it dozens of times of the years. This is an challenging game to play, but VERY easy to win when you’re playing it correctly.

      Like

      1. Thanks for the positive response Mark. I highly value your expertise and advice. I’m very very optimistic about the success for SMSI and have been buying more shares on this latest dip. I can’t recall a more lucrative opportunity based upon the overall risk/reward in my investment career.

        Liked by 1 person

        1. I agree. This is one of the best opportunities I have found as well. But let’s not allow that to cloud our judgment. Have to remain mindful of risk when sizing the position.

          I would rather regret not making an extra million then regret losing an extra million.

          Liked by 1 person

  14. I am a dentist and lectured a number of years ago for a computerized device that allowed for painless injections. Great product but the cost added 1 dollar per injection. I was using the product before it’s launch and it was a great product. When launched the at the national dental show the booth had dentists 3 deep to buy the product. I thought it was a huge success. The stock ran from 4 to 30 in 2 weeks due to the razor blade effect of having to buy the tips at a dollar each. Then the floor fell out as there was an initial group that wanted the device but the average dentist would not spend the money. You can guess what happened to the stock. But a great product at the time.

    Like

    1. That is very typical of stocks. I call that the Great Find, Wait Time, and Gold Mine phases of a stock lifecycle. If you find a great opportunity, the stock might shoot up beyond the level where it belongs, then (often in conjunction with Moore’s Chasm).

      Learn about these 2 things and you will be armed to be much more successful with your future investments. You can Google the latter and find info on the former here – https://markgomesstocks.wordpress.com/2018/01/17/the-multi-millionaire-methodology/

      Like

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