A Quantum Leap in Investment Technology $100 2/17/17 17 High - - PowerPoint PPT Presentation

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A Quantum Leap in Investment Technology $100 2/17/17 17 High - - PowerPoint PPT Presentation

Dec 07, 2023 251 likes •362 views

A Quantum Leap in Investment Technology $100 2/17/17 17 High Price: : $96.65 5/30/19 19 Low Price: : $27.40 $90 -71.6% loss $80 2/17/17 17 Mark rket Cap: $117 B 5/30/19 19 Mark rket Cap: $33 B -$84 billion on loss $70 $60 $50

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A Quantum Leap in Investment Technology

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$20 $30 $40 $50 $60 $70 $80 $90 $100 Jul 2015 Jan 2016 Jul 2016 Jan 2017 Jul 2017 Jan 2018 Jul 2018 Jan 2019 2/17/17 17 High Price: : $96.65 5/30/19 19 Low Price: : $27.40

  • 71.6% loss

2/17/17 17 Mark rket Cap: $117 B 5/30/19 19 Mark rket Cap: $33 B

  • $84 billion
  • n loss

This loss s was completel tely avoidab dable! e!

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Date te Price Bro rokerag age Action Rating Price Targ rget Loss to to 6/25/ 5/19

2/16/2018 $70.80 Jefferi feries es Finan anci cial al Group Reiterated Rating Buy $95.00

  • 57%

2/15/2018 $72.71 Bank of Americ erica Set Price Target Buy $100.00

  • 58%

2/15/2018 $72.71 Susqueh ehanna a Bancs cshares res Lower Price Target Neutral ➝ Neutral $80.00 ➝ $77.00

  • 58%

2/14/2018 $71.92 Morg rgan an Stan anley ey Set Price Target Buy $88.00

  • 57%

2/12/2018 $71.81 Susqueh ehanna a Bancs cshares res Set Price Target Hold $80.00

  • 57%

1/30/2018 $78.50 Piper Jaffr fray ay Comp mpan anies es Reiterated Rating Overweight ➝ Overweight $90.00 ➝ $94.00

  • 61%

1% 1/19/2018 $79.66 Jefferi feries es Finan anci cial al Group Initiated Coverage Buy ➝ Buy $95.00

  • 61%

1% 11/3/2017 $78.00 Morg rgan an Stan anley ey Lower Price Target Overweight $92.00 ➝ $88.00

  • 61%

1% 11/2/2017 $78.03 BMO Capital tal Markets ets Lower Price Target Market Perform $96.00 ➝ $82.00

  • 61%

1% 11/2/2017 $78.00 Susqueh ehanna a Bancs cshares res Lower Price Target Neutral ➝ Neutral $83.00 ➝ $80.00

  • 61%

1% 11/2/2017 $78.00 Cred edit t Suisse e Group Reiterated Rating Outperform $100.00 ➝ $90.00

  • 61%

1% 11/2/2017 $78.00 Citi tigrou roup Lower Price Target Neutral $90.00 ➝ $82.00

  • 61%

1% 10/13/2017 $77.74 Morg rgan an Stan anley ey Lower Price Target Overweight $95.00 ➝ $92.00

  • 61%

1% 10/13/2017 $77.74 UBS S Group Reiterated Rating Buy ➝ Buy $97.00 ➝ $89.00

  • 61%

1% 10/6/2017 $78.18 Piper Jaffr fray ay Comp mpan anies es Upgrade Neutral ➝ Overweight $92.00 ➝ $90.00

  • 61%

1% 10/4/2017 $77.77 Gold ldma man Sach chs Group Downgrade Buy ➝ Neutral $95.00 ➝ $87.00

  • 61%

1% 10/3/2017 $77.82 Roya yal Bank of Canad ada Reiterated Rating Buy $95.00

  • 61%

1% 9/21/2017 $79..01 Stifel fel Nico colau aus Reiterated Rating Buy $95.00

  • 61%

1% 9/14/2017 $81.20 Susqueh ehanna a Bancs cshares res Reiterated Rating Hold $84.00

  • 62%

9/10/2017 $81.72 Cred edit t Suisse e Group Set Price Target Buy $100.00

  • 62%

9/6/2017 $81.33 BMO Capital tal Markets ets Reiterated Rating Hold $96.00

  • 62%

9/1/2017 $80.85 Roya yal Bank of Canad ada Reiterated Rating Buy $95.00

  • 62%

8/16/2017 $86.50 Piper Jaffr fray ay Comp mpan anies es Set Price Target Hold $92.00

  • 65%

8/9/2017 $86.46 Susqueh ehanna a Bancs cshares res Reiterated Rating Neutral $94.00 ➝ $85.00

  • 65%

8/7/2017 $87.02 Beren enberg rg Bank Set Price Target Buy $102.00

  • 65%

8/5/2017 $86.66 Cred edit t Suisse e Group Set Price Target Buy $100.00

  • 65%

8/1/2017 $86.67 Susqueh ehanna a Bancs cshares res Reiterated Rating Hold

  • 65%

7/29/2017 $87.64 Cred edit t Suisse e Group Set Price Target Buy $100.00

  • 65%

7/10/2017 $82.77 Susqueh ehanna a Bancs cshares res Reiterated Rating Neutral $99.00 ➝ $91.00

  • 63%

6/28/2017 $87.82 JPMo Morg rgan an Chas ase e & Co. Reiterated Rating Overweight $102.00 ➝ $99.00

  • 65%

Is there any Wall Street firm which will give you a complete paper trail

  • f all their buy, sell and hold recommendations? Why not?
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Since ce March ch 2018, 018, when en Heinz inz traded aded at $62. 2.29 29, Morningstar consistently rated Kraft Heinz as “undervalued”. Heinz inz closed sed on June ne 25, , 2019 019 at $30.6 30.68. 8.

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Holders s as of 3/31/1 /19 Value on 2/17/17 Value on 3/31/19 Potential ial Loss s ($K) K)

Berkshire re Hath thaw away ay $37,502,941 1 $10,631, 1,977 $26,870,964 Vanguard rd Group $5,504,715 $1,560,571 $3,944,144 Magel ellan an Asset et Mgmt. mt. $4,271,979 $1,211,094 $3,060,885 Black ackRoc Rock $4,244,988 $1,203,442 $3,041,546 State te Stree reet $3,222,946 $913,696 $2,309,250 Inve vesc sco $2,252,322 $638,527 $1,613,795 North thern ern Trust $857,307 $243,044 $614,263 AIG $855,582 $242,555 $613,027 Fideli elity ty $834,410 $236,553 $597,857 Bank of Americ erica $817,574 $231,780 $585,794 Bank of New York $680,804 $193,006 $487,798 Morg rgan an Stan anley ey $675,414 $191,478 $483,936 Capital tal Research arch $626,486 $177,607 $448,879 Goldman man Sach chs Group $499,240 $141,533 $357,707 Dimen mensional al Fund Advi visors rs $327,347 $92,802 $234,545 Charl arles es Schwab $310,345 $87,982 $222,363 Wells Farg rgo $272,913 $77,370 $195,543 Swiss Nati tional al Bank $272,094 $77,138 $194,956 UBS S Group AG $271,654 $77,013 $194,641 Sumi mitomo mo Mitsui Trust $266,461 $75,541 $190,920 Roya yal Bank of Canad ada $252,108 $71,472 $180,636 UBS S Asset et Mgmt.

  • mt. Americ

ericas as $237,202 $67,246 $169,956 TIAA AA CREF REF Inve vestme tment t Mgmt. mt. $236,493 $67,045 $169,448 Susqueh ehanna a Intern ernation ational al $232,362 $65,874 $166,488 BNP NP Pari ribas as Arbitrag trage e SA $226,292 $64,153 $162,139

Total $47,111,480 480 Holders s as of 3/31/1 /19 Value on 2/17/17 Value on 3/31/19 Potential ial Loss s ($K) K)

JPMo Morg rgan an Chas ase e & Co. $223,120 $63,254 $159,866 NY State te Reti tireme rement t Fund $205,261 $58,191 $147,070 Oppen enheimerF eimerFunds Inc. c. $191,921 $54,409 $137,512 Deuts tsche e Bank AG $165,899 $47,032 $118,867 Wellingto ton Mgmt. mt. $156,711 $44,427 $112,284 Russ ssell l Inve vestme stments ts Group $154,019 $43,664 $110,355 Cred edit t Suisse e AG $147,458 $41,804 $105,654 Firs rst t Trust t Advisors rs LP $146,686 $41,585 $105,101 Parame rametri tric c Portf rtfolio Associate ates $145,987 $41,387 $104,600 Barc rclay ays PLC LC $140,555 $39,847 $100,708 Cibc World Markets ets $138,739 $39,332 $99,407 Capital tal Fund Mgmt. mt. $136,079 $38,578 $97,501 Alps Advi visors rs Inc. c. $134,788 $38,212 $96,576 Price e T Rowe e Associ ciates tes $131,843 $37,377 $94,466 CA A Employee ees Reti tireme rement $131,772 $37,357 $94,415

  • D. E. Shaw

aw & Co. Inc. c. $128,583 $36,453 $92,130 Allianceb cebernstein tein L.P. $122,636 $34,767 $87,869 CA A Teach achers ers Retiremen etirement $117,557 $33,327 $84,230 NY Teach achers ers Retiremen etirement $116,470 $33,019 $83,451 Pruden enti tial Finan anci cial Inc. c. $106,876 $30,299 $76,577 Capital tal Intern ernation ational Investo vestors rs $106,576 $30,214 $76,362 Principal al Finan ancial al Group $101,313 $28,722 $72,591 Lord rd Abbett tt & CO. $100,968 $28,624 $72,344 Teach achers ers Advi visors rs $100,110 $28,381 $71,729 State te Board ard of Admi

  • min. of FL.

$95,507 $27,076 $68,431

Total $2,470, 0,097 97

Th These ese inves vestor

  • rs

s had ad potential ential losse ses s of nearly arly $50 50 billion

  • n.

ERS’s technology clearly indicated KHC was as alwa ways ys a v very high gh-ri risk k invest stme ment.

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2/17/17 17 $96.65 $96.65 Price Risk 100 Financ ncia ial l Risk 96 5/2/18 $54.20 $54.20 Price Risk 85 Financ ncia ial l Risk 92 8/3/18 $64.48 48 Price Risk 88 Financ ncia ial l Risk 85 5/30/19 19 $27.40 $27.40 Price Risk 82 Financ ncia ial l Risk 68 $20 $30 $40 $50 $60 $70 $80 $90 $100 Jul 2015 Jan 2016 Jul 2016 Jan 2017 Jul 2017 Jan 2018 Jul 2018 Jan 2019

Kra raft t Heinz z Corp rp is abou

  • ut 150

0 ye years old, d, a name e recog

  • gniz

ized ed by 90% 0% of America ricans.

Heinz’s brand and history gave investors unwarranted confidence. However, their financial statements indicated a failing company with extrao aordinar nary y risks ks. When it fell from $97 to $54, the decline was not an

  • pportunity to buy at a “bargain price”. It remained

a failing company with extrao aordinar ary y risks ks. ERS’s technology reliably identifies and measures the finan anci cial al and price risks s of publi lic compani anies.

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  • On

On J June e 25 25, 20 2019, Guggenh uggenhei eim Securit urities ies analyst Laurent Grandet had the following to say about Kraft Heinz:

– “In our view, Patricio [CEO] faces a monumental challenge to put Kraft Heinz on a path to success…” – In order to accrue cash to fund other priorities —the company must invest as much as $800 million to jumpstarts sales growth — Kraft Heinz must "aggressively" sell close to $7 billion in assets – If Kraft Heinz doesn't sell aggressively, he warns, the company could run

  • ut of cash by 2020 at its current spending pace.
  • Kraft Heinz closed at $30.68, down –68% from their 3-year high

From Kraft’s high price on Feb 17, 2017, invest estor

  • rs lost $80.4

4 bill llion

  • n

ERS’s technology clearly indicated Kraf aft t wa was al alwa ways ys a ve a very hi y high gh-ri risk sk inve vestme tment nt.

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On On F Februar ruary y 17, 20 2017, Kraft Heinz’s traded at $96.65.

– ERS’s Price Risk Rating: 100 – ERS’s Financial Risk Rating: 96

– The stock very over-priced; their finances very risky.

On On A August ust 3, 3, 20 2018, Kraft Heinz’s price was $64.48.

– ERS’s Price Risk Rating: 88 – ERS’s Financial Risk Rating: 85

– The stock very over-priced; their finances very risky.

On On M May y 30 30, 20 2019, 9, Kraft traded at $27.40

– ERS’s Price Risk Rating: 82 – ERS’s Financial Risk Rating: 68 68

– At this time, Kraft’s financial condition has improved, but it is still very risky.

Not ALL Ris isky ky Sto tocks cks Fall ll But, , All l Sto tocks cks That t Fall ll Greatl atly Were e Very Ris isky By Avo void iding ng Very Ris isky Sto tocks cks, Your ur Portf tfoli

  • lio
  • Will

ill Grow w Surer er and Fast ster er

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With ERS’s Technology investors will:

1.

  • 1. Avo

void id Losses ses, 2.

  • 2. Reduce

uce Losses ses, 3.

  • 3. Improv
  • ve

e Net Profits its, 4.

  • 4. Make

e Cl Clients nts Happ ppier ier, , and 5.

  • 5. Incr

crease ease Co Corporat rate e Net t Inco come