Michael Markowski’s Visionary Research Overview
Michael Markowski has been a visionary analyst since 1978. Throughout his 37 years in the Capital Markets he has endeavored to discover the Financial Statement metrics which drive the valuations of assets.
Markowski began conducting visionary research during his training at Merrill Lynch. It led to GEICO becoming the very first stock recommendation he made to his clients. The auto insurance company was subsequently acquired by Warren Buffet’s Berkshire Hathway for a 900% gain. The research Markowski conducted (while employed at Donaldson Lufkin & Jenrette in 1984) on 250 public companies which had significantly outperformed the stock market enabled him to conclude that the companies had a common denominator enabling their shares to outperform the overall market.
After Enron mysteriously collapsed into bankruptcy with its share price falling to pennies within six months of having a price of over $50, Mr. Markowski conducted a post mortem (financial) autopsy to see if he could determine what caused its financial collapse. Enron’s Financial Statement anomaly, discovered by Markowski, inspired him to develop a diagnostic algorithm to identify this type of anomaly. He then launched a website which investors use to diagnose and monitor their holdings for this very anomaly that had stricken hundreds of public companies, including Lehman Brothers, over the last 10 years.
Markowski’s most valuable research to date is his most recent research on Crowdfunding and the impact that it’s going to have on the share prices of those companies which are already in position to benefit from Crowdfunding. This research provides a roadmap for investors to generate potentially 10 to 100 times on their investment from a diversified portfolio by the end of the decade.
Visionary Research Discoveries from 1978 to 2014
1978: There is a correlation between Financial Statement and share price performance.
Michael Markowski became aware during his training program at Merrill Lynch that there was a correlation between a corporation’s financial performance and its share price performance. After reading a report by Standard & Poor’s about the top 10 public companies that had the best earnings performance between 1967 and 1976, he performed rudimentary research on the share price performance of ten companies. Markowski was stunned to learn that the share prices of all ten of the corporations had appreciated by more than 20 fold during the same period.
1984: Consistent revenue growth is the key to maximum share price performance.
After reading a report entitled “More than a Year”; produced by Donaldson, Lufkin & Jenrette’s Chief Investment Officer; Markowski became aware that there were 250 public companies which had share prices that multiplied by a median 18 times between 1974 and 1983. He conducted in-depth research on the 250 companies to determine if there was a common denominator in the companies’ Financial Statements. He discovered that the prevalent common denominator was consistent revenue growth.
2002: The EPS Syndrome, a Financial Statement anomaly which predicts bankruptcies for seemingly healthy companies .
After Enron filed for bankruptcy in December of 2001, with all 27 of Wall Street’s Research Analysts having “buy” recommendations on its shares, Markowski decided to perform a post mortem (financial) autopsy on the energy company’s Financial Statements. He discovered an anomaly in Enron’s prior quarterly Cash Flow Statements, which six months prior to the actual collapse, accurately predicted that it was on the verge of a financial collapse. Markowski then conducted a back test and found that that there were more than 100 companies, including Sunbeam Corporation, in the previous five years which had suddenly gone out of business after having the same anomaly. He named this anomaly, “The EPS Syndrome”. Markowski developed an algorithm that could be used to automatically detect the syndrome and developed a website, StockDiagnostics.com, which investors can utilize to diagnose and monitor their holdings.
2008: The Online Financial Sector has the lowest risk of any industry or sector.
Markowski discovered that the two most successful recommendations he made in the OPS Newsletter, Investools and Bankrate, each of which had multiplied by more than 10 times, were members of the online financial sector. After conducting extensive research on the sector and all of its past and present members, Markowski was able to determine that the sector and its members had the lowest risk as compared to any of the more than 200 sectors or industries that he followed. As a result, he founded OnlineFinancialSector.com to educate investors about the sector and publish his recommendations covering the public companies in it.
2013: The shares of companies positioned to benefit from Crowdfunding are significantly outperforming the market.
After the SEC announced that it was lifting the first Crowdfunding ban which had been in place since 1933, Markowski conducted a research study covering those public companies which were already positioned to benefit from the onset of Crowdfunding. He discovered that the share prices of the 17 public companies already well positioned to benefit from Crowdfunding significantly outperformed the major stock market indices from July 10, 2013 (the date that the SEC announced they were lifting the first ban) and December 31, 2013. This discovery motivated Markowski to conduct research on those public companies that were in the position to capitalize from the Internet when its rapid growth phase began in 1995.
2014: Four new industries are now emerging to support Crowdfunding.
After discovering in 2013 that the shares of the 17 public online companies in the position to benefit from Crowdfunding were outperforming the market, Markowski conducted research on the price performance of the Internet stocks from 1995 to 2000. This five year period covered the Internet from its infancy (16 million) to when it went main stream (360 million). Markowski focused on this period of the Internet’s growth phase since he believed that Crowdfunding’s user base growth from 2013 to 2018 could follow a similar trajectory as the Internet’s from 1995 to 2000. Markowski examined the share price performance of router manufacturer, Cisco Systems and the other public companies which were in the position to provide the infrastructure to support a 20 fold increase in its number of web users from 1995 to 2000. He found that the shares of Cisco Systems and the others significantly outperformed the market. Markowski conducted research on the new private companies that emerged including Yahoo, Ebay and Amazon, etc. He discovered that the share prices of many that launched IPOs from 1996 to 1998 multiplied by more than 100 times in price by 2000.
Markowski’s research enabled him to identify the four new Internet infrastructure industries that emerged from 1995 to 1998, which collectively had several hundred companies that launched IPOs. Due to his uncovering the four new Internet industries which emerged in the late 90s while noting that the user growth trajectories for Crowdfunding in 2013 and the Internet in 1995 could be very similar, Markowski discovered four newly emerging Crowdfunding infrastructure industries. He also identified 20 pre-IPO companies who are members of the four industries which have the potential to appreciate by 100 times by 2018.
A 12 minute video, “Crowdfunding’s Impact on the Markets” containing Markowski’s proprietary research findings covering the Internet from 1995 to 2000 and Crowdfunding is recommended for viewing. The video includes forecasts for the total fees and commissions that will be generated from Crowdfunding activities. This video includes details on the four new Crowdfunding infrastructure industries that are now emerging.
2014: That Social Investing Communities (SIC) are the key to Crowdfunding.
Michael Markowski recently made what he believes will prove to be his greatest major discovery. It is that Social Investing Communities (SIC) are now emerging and they, not the government regulated funding portals, will be the catalysts to ignite US and global Crowdfunding. The discovery was made due to his extensive knowledge on Crowdfunding, which was enhanced as he read the June 2014 article, “For many Startups there is no “Crowd” in Equity Crowdfunding” by the CEO of ASSOB (Australian Small Scale Offerings Board). ASSOB was the world’s first and oldest government regulated Crowdfunding portal. Mr. Niederer pointed out in his article that ASSOB had not been able to gather a crowd to invest in any of the deals on its platform. He explained that he believed the inability for a portal to curate or recommend one of their listed deals over another due to government regulations preventing them from doing so was the reason large crowds were not assembling.
Markowski now believes that for Crowdfunding to begin to grow exponentially and become ubiquitous, the deals that seek funding will either have to join with or receive backing from an SIC. An investing community has a huge advantage over a funding portal. It can educate its members about the types of companies that it follows and their investment potential. An SIC can curate or promote the deals to its investor members since it’s not regulated.
Based on his discovery, Mr. Markowski co-founded the Dynasty Wealth Investing community. It’s a niche investing community focused on identifying those companies which have the potential to multiply by 10 to 100 times in value or price within five years. Dynasty Wealth’s mission is to enable its individual investor members to build dynasty wealth from investing in a diversified portfolio consisting of the community’s member companies.
2016: Metrics for 2008's Crash and Development of "NIRP Crash Indicator"
During the first two months of 2016, Markowski observed a degree of volatility that he had only seen throughout his 40 year career in 2008. Given his experience and track record for developing algorithms that successfully warn investors about potential catastrophes — including Lehman, Bear Stearns and Merrill Lynch documented in his 2007 Equities Magazine column — he conducted extensive research on the crash of 2008. Through this research he discovered metrics that could have been used to predict the 2008 crash. Additionally, the metrics could have been used to predict when that “storm” was over, as well as the V-shaped, or 180-degree reversal off of the market’s March 9, 2009 bottom and the V-shaped reversal.
The metrics are now powering an indicator or warning system that he developed and named the “NIRP Crash Indicator”.
Markowski is now utilizing his NIRP Crash Indicator to monitor the markets for indications of any impending crash. The NIRP Crash Indicator is freely available at www.dynastywealth.com.