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Subject: Capital Market Wiki

A semantic wiki, based on Capital Market Taxonomy, designed to assist collaborative research on capital market topics. See: http://www.capital-market-wiki.org/wiki/index.php?title=Main_Page

Post Modern Security Analysis

Truth, fact, and opinion

University library + Internet = open source info

In security analysis, it is important to get the facts, before forming an opinion. Effective collaborative research calls for rigorous separation of the fact-gathering from the decision-making stages of the process. This article shows how fact-gathering of open-source information on the Internet could have saved investors from the Madoff calamity.

This is Part Eight in a series on Post Modern Security Analysis.

Post Modern Security Analysis:

Creating a research community

Finding a collaborative research group ...

Post Modern Security Analysis calls for collaborative research of open source investment information.

But how can such collaboration be organized?

This article describes how the wiki concept, Capital Market Taxonomy, and pre-defined topical outlines facilitate the process.

Investor protection:

US SEC lets issuers play “Where’s Wally?”

The fine art of hiding in plain sight

The US SEC allows issuers to hide required disclosure by perceptual tricks that remind one of the children’s series, “Where’s Wally?”

These methods include burying warnings in a list of unlikely risks, incorporating facts ‘by reference’, loading documents with irrelevancies, and playing the ‘each fact in the proper document’ game.

Capital Market Taxonomy provides ready-to-use check-lists that help analysts cut through dense disclosure documents.

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Featured articles on inside pages

Stock buybacks

WSJ exposes the 9/11 caper

In a major exposé of misused executive options, the Wall Street Journal ran a front page article, reporting that as stocks sank after the the 9/11 attacks, scores of companies rushed to issue options to top officials. Some executives reaped millions.
More ...

Securities Analysis

Intrinsic value

The target of classical security analysis is 'intrinsic value', a fuzzy concept defined as the value justified by the facts. Now, there may be too many 'facts' while prices exceed 'intrinsic value'. More ...

US Politics

The decline of mainstream media

In September 2009, President Obama dominated television in his attempt to sell his government-run health plan, despite massive public opposition. Mainstream media has falling revenues and market share as people turn to unbiased sources. More ...

US equities

Stock values and cash dividends wither

Wall Street ballyhoo and flim-flam to the contrary, the year 2005 closed-out half a decade of misery and pain for the average investor in US equities. Average cash dividend yields never surpassed 3.8% during the period, and most of this was consumed by taxes and management expenses of the open-end mutual funds. More ...

US Bonds

Bond demand exceeds supply for a decade

Over the decade, 1995-2004, the demand for US bonds of all types has surpassed new bond issues in eight of the last ten years. This is the reason that bond prices have held firm, even in 2003, when net new issues reached almost $1.8 trillion. More ...

World Economy

Working off the US trade deficit

Foreigners hold $16.8 trillion in US financial assets as a result of selling more goods to Americans than they buy from them. Since the 'deficit' is in dollars, the US has no problem in 'paying it off'. More ...

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2010-08-12 16:02