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    Home Unlabelled Stock Market - For everyone calling the next market crash…

    Stock Market - For everyone calling the next market crash…

    September 14, 2021

    Stock Market - For everyone calling the next market crash…

    For everyone calling the next market crash…

    Posted: 14 Sep 2021 09:22 AM PDT

    Warren says Fed must break up 'repeat offender' Wells Fargo. The bank has paid over $5 billion in fines. "irredeemable repeat offender." Warren urged the central bank to revoke Wells Fargo's status as a financial holding company and order it to sell off its investment banking and nonbanking assets.

    Posted: 14 Sep 2021 01:16 PM PDT

    Is it starting?

    Posted: 14 Sep 2021 10:27 AM PDT

    U.S. SEC will publish GameStop post-mortem 'shortly,' Gensler says. https://www.reuters.com/business/finance/us-sec-chief-takes-broad-aim-financial-industry-senate-hearing-2021-09-14/

    Posted: 14 Sep 2021 01:54 PM PDT

    The Medallion Fund - The greatest hedge fund of all time!

    Posted: 14 Sep 2021 04:54 AM PDT

    The Medallion Fund - The greatest hedge fund of all time!

    Jim Simons, the founder of the Medallion Fund has done what most people consider to be impossible. His fund has consistently beaten the market over the last 30 years. The fund has had an average return of 66% before fees during the period of 1988-2018!

    To put these returns in perspective, $100 invested into the Medallion Fund in 1988 would have converted into $398 Million by 2018. Even net of fees [1], the fund has outperformed S&P 500 returns by ~1000 times and Warren Buffet's returns by ~200 times!

    If you are still not convinced about the absurdity of the returns, take a look at the following chart which showcases the annual returns for the Medallion fund in comparison with S&P 500.

    Notice anything strange? Since its creation, the fund has only lost money in a single year [2] (1989). For the next 30 continuous years, there was not even a single year where their returns dropped below 20%. Even at the peak of the 2008 financial crisis, the fund had made an 82% gain net of fees!

    We all know that Hedge Funds gets a lot of hate, most of the time justifiably so. But returns like this sustained for such a long time period call for further scrutiny. So in this week's analysis, we are deep-diving into how the Medallion Fund created such outsized returns for its investors.

    The Beginnings

    Jim Simons has a Ph.D. in Mathematics, taught math at MIT, and has worked for NSA as their codebreaker before turning his attention to the stock market. He was one of the first people who realized that pattern recognition could be applied to beat the stock market.

    He created a trading system that uses quantitative models and formed Renaissance Technologies in 1982. The peculiar thing about this hedge fund is that it does not hire anyone from financial or business backgrounds.

    They solely focus on physicists, statisticians, mathematicians, and signal processing experts and believe that the herd-like mentality of business school graduates leads to poor returns! Renaissance's headquarters is famously known as the world's best physics and mathematics department.

    This view is extended to their investment philosophy as highlighted by Robert Mercer (Co-CEO), Medallion Fund only focuses on the quantitative model recommendations and not the underlying business performance/strategy [3].

    Fund Performance

    I know we discussed the extraordinary returns of the fund in the beginning, but the following chart will put the sheer numbers into perspective.

    By now we know that the fund has outperformed the S&P 500 index by a wide margin. But in this research paper by Bradford Cornell (Finance Prof at UCLA), he argued that even if the investor had the ability to predict the stock market returns perfectly on a monthly basis (shift the money to treasury during downturns and back to stocks during the upswings), the investor would only have been able to turn the $100 into $331K (an insane 331,100% return) but even this would be nothing in comparison to the ~$400 MM return generated by The Medallion Fund.

    It's not often you see Warren Buffet so low down a list for long-term investment returns. The Medallion Fund has beaten all the well-known investment managers by a wide margin over its 30 year period.

    Fund Strategy

    While the exact inner workings of the fund are only known to a few key insiders who are tightly bound by confidentiality clauses, what we know comes mainly from the book 'The Man Who Solved The Market' by Gregory Zuckerman [4].

    As per the book, Medallion strategy involves holding thousands of short-term long, and short positions (aka like your avg r/wallstreetbets user) at any given time. Allegedly, they win 50.75% of the trades they make (not like your avg r/wallstreetbets user) which is enough to make them billions as they are conducting millions of trades every year.

    Adding to the excellent quantitative models they have created, Medallion Fund also did two things right

    1. Leverage: It's estimated that Medallion trades with 12.5x leverage on average with it going up to 20x when the system is confident. If you remove the leverage from the picture, the fund's returns are similar to S&P 500. It's their effective usage of leverage and deep understanding of risks involved that makes their returns legendary
    2. Fund size cap: The fund has made sure that their Asset Under Management (AUM) never goes beyond $10Billion. They understand that adding more money might not work with the same strategies and have paid out their returns to their investors to keep the AUM same.

    What does this mean for an average investor?

    The Medallion Fund has been closed to outside investors since 1993. As of now, only the existing and previous employees of the company can invest in the fund. The funds of Renaissance that are open to the public have performed so poorly that the two funds made it the HSBC's top 20 losers list for 2020.

    While it certainly is a bummer that the average investor cannot invest in the fund, this analysis gave us some key insights into the market. The first and most important being that the stock market is not perfectly efficient and that there are inefficiencies that someone can leverage for more than 3 decades. The second being that not all funds that charge an exorbitant fee structure [1] are taking money away from the investor. In Medallion's case, they are justifying their eye-watering fee structure with phenomenal returns.

    Finally, this should not be considered as a call to action to find similar funds as not every team with stellar people end up producing market-beating returns [5]

    Conclusion

    It's like Jim Simon's had created a license to print money with the Medallion Fund. How long the fund's algorithms can remain a secret and continue generating market-beating returns is anyone's guess. My incredulity and skepticism during this analysis was perfectly captured by Bradford Cornell in his research paper

    During the entire 31-year period, Medallion never had a negative return despite the dot.com crash and the financial crisis. Despite this remarkable performance, the fund's market beta and factor loadings were all negative, so that Medallion's performance cannot be interpreted as a premium for risk bearing.

    To date, there is no adequate rational market explanation for this performance.

    Until next week…

    Footnotes

    [1] The fund charges an exorbitant amount of fees. From 2002 onwards, it has a 5% management fee and 44% performance fee. To signify the impact of this fee, let's take the following e.g. if you invest $100K into the fund and at the end of the year, your fund grows to $130K (a 30% return), they would charge you $5K (5% management fee) + $13.2K (44% of the profit) for a total of $18.2K in fees. So your net returns would only be 11.8%. Even if they lose money, they will still charge you $5K for managing your money. Vanguard SP500 ETF would charge you $30 for the same!

    [2] Even in the year, their returns were negative, the fund returns before the fee were + 1%. The 5% management fee pushed them to the -4% net returns.

    [3] His exact quote was "sometimes it [the model] tells us to buy Chrysler, sometimes it tells us to sell"

    [4] The man who solved the market — It's an excellent book and a highly recommended read.

    [5] Long Term Capital Management - A fund that was managed by a bunch of PhDs and Nobel laureates. It had posted great returns since starting in 1995 (in the 40% range) only to be bailed out in 1998, and was dissolved in 2000)

    submitted by /u/nobjos
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    Goldspot Discoveries: Integrating Big Data & Artificial Intelligence in the Mining Industry

    Posted: 14 Sep 2021 09:04 AM PDT

    Due Diligence on Goldspot Discoveries (SPOT.V / SPOFF ) – 14 September 2021

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    https://preview.redd.it/ky868hdf6hn71.png?width=605&format=png&auto=webp&s=28e48d1c4d52c2dfc0bcdc97cfb63ac3c74af174

    General Information

    (as of 14 September 2021)

    Market Cap (intraday) 111.75M

    Enterprise Value 60.42M

    Trailing P/E 3.50

    Price/Book (mrq) 1.92

    Enterprise Value/Revenue 7.97

    Shares Outstanding 121.47M

    % Held by Insiders 54.21%

    Introduction

    Mining exploration is undergoing a revolution; only the mining industry hasn't realized it yet. The insurgents leading the revolution come from Goldspot Discoveries, a small Canadian technology company that is bringing AI/Machine Learning into the traditional geosciences field that has long dominated the exploration game. Still an early-stage company, Goldspot remains undervalued even as it has consistently outperformed expectations while delivering outstanding revenue growth and profitability. The company is well capitalized and has built a huge head start on any future competition that will take several years (at best) to close. While all of these factors would be a great story for any company, they aren't even the best part of the Goldspot story. Just like the group of MIT students used data analysis methodologies to stick it to the blackjack casinos (described in the book Bringing Down the House and the film 21), Goldspot is cracking the code for junior mining investment in order to rewrite the odds of the game in their favor. To put it simply, this is the moment where big data meets small miners – and one of the first hands Goldspot has played (New Found Gold - $NFG) has already given the house a good shake.

    Company Overview

    Goldspot Discoveries started as a group of data scientists out of Quebec that competed in a mining technology challenge. Their approach to improving mining exploration was to utilize advanced data analysis techniques to improve the probability of drilling success. This group of scientist were connected with Denis Laviolette and Cejay Kim and together they turned this new technical approach into a functioning geoscience consulting business. Goldspot was officially formed in 2016, and then went public via a reverse merger in early 2019. For the last several fiscal quarters, Goldspot has seen revenues skyrocket (see charts in later sections), while building an investment portfolio that would make many far larger companies green with envy. Goldspot has been rewarded for its strong operational and financial performance with 8-fold gains in its stock price in the last 12 months (achieved on consistent and sustainable price gains). Looking forward, Goldspot has put teasers into the market of several new technologies, products in the r/D pipeline, and strategic partnerships that should deliver strong shareholder value into the future.

    Goldspot is a technology and consultancy company that specializes in applying machine learning & artificial intelligence to collect, interpret and convert data into so-called 'Smart Targets' that can pinpoint the exact location of potential new resource reserves.

    Contrary to what the company's name would suggest, Goldspot specializes in finding almost any commodity reserve. Many of Goldspot's current clients are gold miners and silver miners, but there is also significant demand from the lithium, copper and base metal industry for Goldspot's services.

    The search for new mineral reserves is not a new phenomenon. But with a dwindling number of new discoveries, the global supply chain is facing a decreasing supply and a rising demand. With fewer, smaller and more expensive discoveries, the mining sector is facing a problematic issue. Goldspot is tactically responding to this with the introduction of deep learning algorithms that can highlight and identify new innovative mathematical solutions and interpretations on geological patterns. Deep learning makes it possible to analyze an enormous amount of data that is virtually impossible for the human brain to analyze and interpret properly.

    The new technologies have enabled Goldspot to produce results that were not possible before. This significantly increases the reliability & accuracy of the targets. In addition to the extreme accuracy of Goldspot's results, Goldspot saves its clients a lot of time and money by letting software do the bulk of the work. By reducing costly human labor and time while improving results Goldspot has set up a compelling alternative to traditional methods and has proven to be a very attractive solution for mining companies.

    Goldspot's Business Model

    Summary

    One of best way to analyze Goldspot's business is to look at it as a car. The AI/Machine Learning (discussed in detail below) is the engine and the rest of the business model is the vehicle that is built around that engine. At its core, Goldspot is a technology company. Upwards of 2/3rds of the its employees work on the technical side of the business – mostly out of its location in Montreal. Quebec is a highly underrated hotspot of engineering and technical talent, with several top universities nearby turning out top-notch talent.

    Goldspot has brought onboard well over 20 PhD's in diverse but related fields such as structural geology, geochemistry, geophysics, and complex data science and so forth. The beauty of Goldspot is its ability to integrate the results of these various fields into a simplified target analysis. Once its geoscience tools are built, Goldspot can then apply it on a wide-scale to create a competitive advantage for its clients.

    Goldspot's business model currently consists of 4 segments:

    Consultancy Services (Smart target generation) Investments Software as a Service (SaaS) Exploration (Golden Planet Mining) Consultancy Services

    Goldspot is advising mining entities for target generation to find new potential reserves with the aforementioned 'Smart Targets' that have been derived from the in-house AI & machine learning algorithms. Goldspot concludes contracts with its clients that cover the costs incurred and generate an decent operating profit for Goldspot that are in line with the average margins in the consultancy sector.

    ​

    https://preview.redd.it/b9ctyxuh6hn71.png?width=605&format=png&auto=webp&s=0b6f28f4bf58d9fcd94abdde847a20baeb66fbfe

    Figure 1: Growth of Goldspot's Consultancy revenue

    The Consultancy turnover is growing by approximately 100% on an annual basis since Goldspot's inception and consists of time waged contracts with mining corporations. The mining corporations can be subdivided into two categories: Junior miners (small mining companies that do not yet have an operational mine, but do have a piece of land, a so called claim) and Majors (mining companies that already have at least one operational mine).

    Goldspot's Consultancy services are based on the in-house processing of historical and/or public big data sets of the client's claim. In combination with the use of Goldspot's AI and machine learning algorithms the company is able to extract correlations & recognize patterns in the big data sets that provide sustained conclusions about a client's claim.

    Goldspot recently acquired the full-service field exploration firm 'Ridgeline Exploration' to provide a full-service solution to solve common inconsistent and piecemeal data collection practices that increase risk and lower efficiency across the industry. With the acquisition of Ridgeline, GoldSpot aims to strengthen its existing consultancy business as well as vertically integrate the ability to capture key data, including airborne geophysical survey mapping, geochemistry, structural mapping and geophysics. By improving the reliability of the big data sets Goldspot works with, the accuracy of the generated Smart Targets will considerably improve.

    ​

    https://preview.redd.it/ybgq6rmi6hn71.png?width=605&format=png&auto=webp&s=502acad0559dbb63389f88e520d213ee739428aa

    Figure 2 Vertical Integration using Ridgeline Exploration Services

    Goldspot has provided consultancy services for big names in the sector like Yamana Gold, Fortuna Silver Mines, Sprott Mining and Vale to name a few, as well as countless Junior Miners among which are the names of New Found Gold, Critical Elements Lithium Corporation and Nevada King Gold Corp.

    ​

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    Investments

    But that is only the first part of the equation. By being able to evaluate large swaths of data over a vast geographical region Goldspot has an edge in being able to pick the potential winners and losers among junior mining exploration companies before everyone else. This is like having the cheat codes to the mining investment game.

    Now it is often so that Junior miners do not have enough working capital to engage Goldspot on their project. They are short on cash and cannot meet the requested rates from Goldspot. Goldspot has devised a smart solution for this particular problem. Before entering into a negotiation with the Junior miner, Goldspot analyzes the claim (territory) of the Junior miner using its in-house software & deep learning algorithms and determines whether there is a significant probability that there is a promising reserve to be found on the claim based on their initial analysis. If that probability looks promising, Goldspot offers to take equity (shares and/or warrants) in the Junior Miner. They participate in a 'Private Placement' which allows the Junior Miner to raise money by issuing shares and/or warrants. As a result the Junior Miner can pay for Goldspot's consultancy services with the capital they raised. Every now and then Goldspot also negotiates for an NSR as part of a deal. An NSR, an abbreviation for 'Net Smelter Return', is a royalty on the net gold quantity a mine produces. These NSR's are often set around 0.5%-2%.

    By applying this method, Goldspot has in addition to a consultancy contract, acquired an interest in the Junior miner. This creates a significant synergy when Goldspot delivers successful 'Smart Targets' and when these targets are also successfully tapped into. As a result the shares of the Junior Miner will increase significantly in value with Goldspot having a stake in the company.

    E.g. One of Goldspot's first clients was the junior miner New Found Gold. Goldspot had at the time entered into a contract with New Found Gold and acquired 1.7M shares and an NSR of 0.5% on the claim using the aforementioned method. At that time, the price of one NFG share was $0.40. After delivering the "Smart Targets" and successful drilling, which continues to this day, the stock has now increased in value by 30 times at a price of $12 per share. As a result, Goldspot's initial investment of $680,000 has appreciated to $20.4M, delivering an unrealized profit of $19.72M. The exact worth of the 0.5% NSR Goldspot acquired on NFG's claim is difficult to estimate until an exact resource estimation and a PFS (Pre-Feasibility Study) and PEA (Pre-Economic Study). Very likely though NFG's 0.5% NSR is worth something in the "tens" of millions but that is still very speculative. Now, certainly not every Junior Miner will be a success story like New Found Gold. However Goldspot's approach on investing in Junior Miners significantly de-risks their Junior Miner portfolio in comparison to other Junior Miner ETF's. Further elaboration on this in the next paragraph.

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    Figure 3: New Found Gold equity position when Goldspot entered the agreement in 2019 and in 2021 after Goldspot successfully delivered numerous drill targets that where successfully tapped into.

    Goldspot is very selective on what Junior Miners the company decides to engage with. To create the highest chance of success they've established a data based approach on finding the best deals on the market. They have previously referred to this as 'Resource Quantamental' and they described it as an AI-driven opportunity generator pointing Goldspot to the ideal companies to work with. Resource Quantamental is the largest aggregate of mining data in the world and makes use of all the big data sets available on the capital markets, management compatibility and historical drilling results as well as geologic data. The output serves Goldspot with the ideal companies that have the highest chance of success when Goldspot engages with them.

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    https://preview.redd.it/raz46f5l6hn71.png?width=605&format=png&auto=webp&s=4d560c6e83bd32c70bbd3cdee96f1c8a238a2d9f

    Figure 4: Investment Performance of Goldspot's portfolio compared to the GDXJ (VanEck Vectors Junior Gold Miners ETF) and the TSX.

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    Figure 6: Selection of Goldspot's equity positions in Junior Miners & Royalty Positions. Note: This is not the whole portfolio only a few selected positions. The whole portfolio has not been made public (yet) due to competitive reasons as mentioned by the company.

    Software as a Service

    To grow Goldspot's consultancy revenue the current team is becoming increasingly more efficient as they develop better skills & internal work processes mature. Furthermore, the company is actively hiring more staff. However, this will pose a problem in the long run. Consultancy business is very employee intensive, and unlike other sectors, there is a great scarcity of people with degrees with the combination of Geology & Data Science. For Goldspot however, people with these profiles are a necessity.

    To overcome this problem and make the in-house technology scalable and lucrative, Goldspot has decided to develop & acquire mining related SaaS products. Work is currently underway for the launch of two highly technical SaaS products that are expected to launch in Q4 2021.

    One of those two new SaaS products is LithoLens, Goldspot's core imaging technology which adds value by extracting geological information from otherwise unused core photography, providing brand new data for 3D modelling and exploration purposes. Core logging is an essential step in the exploration process. It is the manual systematic recording and measuring of information from drill core to determine the lithology, mineralogy, geological history, structure and alteration zones. Due to being a highly manual repetitive task, core logging is subject to human error and rising costs. Litholens can work with imagery from historic and recent drill core photographs, to downhole optical and acoustic televiewer files, to videos of seafloor nodule deposits used in deep-sea mining. The data inserted in Litholens is processed in the cloud and the machine learning creates large and valuable new datasets from underutilized imagery and video data. The total addresable market for Litholens – the so called 'core logging market' currently has a turnover of around $50M per year, but Litholens ability to relog historical imagery could open up a opportunity closer to $500M.

    LithoLens is a software solution that once available to the mining sector, has the potential to provide Goldspot with an additional revenue stream that, unlike the majority of consulting services, is reoccurring in nature. As a result of this potential for significant recurring revenue, the LithoLens technology is a focal point of Goldspot's future growth.

    ​

    Core logging

    ​

    Core logging analytics

    Goldspot recently enhanced its Litholens development by acquiring the tech company Geotic. Geotic's portfolio of 5 software tools (GeoticMine, GeoticLog, GeoticGraph, GeoticCAD and GeoticField) offer diversified 3D modelling and core-logging, improving the way that Geologists and Engineers collect and analyze data. The powerful combination of GeoticLog and LithoLens will create an industry-first core logging and AI imaging cloud solution.

    The second SaaS product scheduled for launch in Q4 2021 is called 'MinusOne' and is a software solution for creating 3-D models from geophysical data processed using deterministic and stochastic inversion methods. With this technology, Goldspot's team also applies a ML (machine learning) method to provide probabilistic framework that helps to analyze uncertainty. The processed results guide exploration drilling locations and geology interpretation.

    Goldspot has now over 40 research and development products currently in development and is now at the point where many of these tools can be monetized on a much larger scale as external software solutions.

    CEO.CA acquisition – the next birthplace for Junior Miners & mining companies

    On the 16th August 2021 Goldspot announced their intent to acquire the social investor network CEO.CA. CEO.CA is an international investor website with the focus on Canadian listed companies. Canada is the global hub for mining entities to seek financing and there are thousands of global mining companies listed on the TSX-V exchange (Toronto Stock Exchange).

    "GoldSpot's focus is to unlock value in mineral exploration with data science and machine learning and we are proud to serve more than fifty global exploration companies in this endeavour. The acquisition of CEO.CA, and the establishment of a technology and media division, is strategic to that vision and provides significant economic potential to our clients and shareholders," commented GoldSpot Executive Chairman & President Denis Laviolette.

    Golden Planet Mining

    Aside from taking equity in third parties, Goldspot has decided to leverage their own tech & brand awareness to set up their own exploration company: Golden Planet Mining (GPM). Formerly known as XCorp AI they merged with Saskatchewan Gold Corp. to acquire the 'Mammoth Gold Project' situated in Saskatchewan, Canada, and form the combined entity Golden Planet Mining. Originally Goldspot invested $475K cad in XCorp AI. Their equity in the combined entity GPM appreciated to $7.78M cad following the next raise, and has since ballooned to $15,53M in the most recent raise to date. At the moment Goldspot holds 28% of Golden Planet Mining with the company looking to go public in late 2021 or early 2022. Following the merger with Saskatchewan Gold Corp, Golden planet Mining has acquired ownership of the Olympus Gold Project in the Northwest Territories and the Rider Gold Project in British Columbia and commenced drilling activities & regional exploration on the properties. Using Goldspot's in-house exploration and data processing tech the claims are being further explored and drilled for more data. If good results appear GPM has a good probability of becoming a major success story for Goldspot.

    How AI and Machine Learning Creates a Competitive Advantage

    Good companies sell a quality product, great companies solve a problem, but the very best companies solve a problem before you even know you have one. The metal/non-metal mining industry has a problem it is either unaware of, or refuses to admit. The problem: the exploration industry is unable to find new big deposits that can be economically extracted without undue environmental damage in order to replace depleted reserves of current major mining companies.

    Exploration by junior mining is one of the great perpetual boom and bust industries. Every year, fortunes are made and lost betting on junior mining companies on the TSX Venture Exchange. Junior miners are typically smaller companies (most with a market cap well under $50 million) that secure land and mining claims in hopes of finding the next big mineral find. When a company makes a big find, the rewards are incredibly lucrative, that can in the tens of thousands of percent gains big. For years, the market unduly rewarded junior miners who found massive mineral deposits. Seemingly, the only metric that mattered was coming up with a big P&P reserve in the tens of millions of ounces.

    But the sad reality is that an overwhelming majority of junior mining companies fail well before mining operations can even begin on these massive mineral finds. At any given time, there are 3,000+ active junior miners trading on the TSX-V exchange. Although most junior miners experience major shifts up and down in share price, it is very rare to get a big win long-term gainer among the junior mining companies. When long-term wins do happen, it is like lightning in a bottle – with sufficient gains to make up for a large number of losses. The key to being a long-term winner is cost of extraction, not volume. For example, an operation with 2 million ounces of gold that be extracted at an AISC cost of $350 is far more attractive of an acquisition target for a major mining company than an operation with 30 million ounces of gold that can be extracted for $1,100 an ounce.

    So why are so many junior mining companies fail? It isn't necessarily that the companies have bad properties or don't find valuable minerals (although that is possible). The reality is that junior mining companies typically fail because they simply run out of money. In order to develop a mining project all the way to production (or acquisition by a major), the junior mining company needs to find the right deposit, with the right economics, with the right timing and all within its limited financial resources. If the company has money to institute a drilling program, the junior mining company usually only has one chance to get it right and obtain a good drill result. If it does, stock price goes up and the junior miner is able to an equity raise sufficient to move on to the next stage of the process. Any faltering along the way, and the entire project (and usually the company itself) goes up in flames. Truly, it creates a "discover or die" environment. Additionally, that discover needs to be in a location and grade that suggests that it can be removed economically.

    While this environment of "discover or die" has always existed for junior miners, there are two more recent industry trends/conditions that are making it even tougher for juniors to succeed. First, mineral finds are become harder and harder to locate. The minerals being found are greater depths or in environments with less surface indicators. This means that there are less easy finds available waiting to be discovered. The second trend is for junior miners to pursue "district-scale" projects. Investors in junior miners are generally looking for companies with huge land holdings so that if there is a find, the potential payouts can be exponentially greater. At the same time, most mining laws around the world require a claim holder to invest a certain amount of money on an annual basis in developing a claim as well as pay a claim fee. These costs are not trivial and can total several million dollars on an annual basis for junior miners with large land packages. So with these additional factors, junior miners are having to look for a smaller needle in a bigger haystack that costs more money to maintain.

    In this environment smaller needles in bigger haystacks, Goldspot is solving the budding problem by building a better mouse trap. With diminishing surface indicators, mining exploration companies need to effectively integrate data obtained from multiple sources. Each time you stack a different level of data on top of another set of data, the complexity does not increase linearly, rather it increases exponentially. The beauty of AI and machine learning tools is that they are able look at data from a potentially limitless pool of data and find subtle geological, geophysical or other structural indicators that collectively increase the likelihood for success. The Goldspot AI tool finds regions or structures where probability of mineralization are higher, but once a general region has been identified, the same tools are also able to narrow in on specific targets to confirm mineralization on a claim that provide a substantially higher likelihood of finding mineralization.

    Financials

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    Risks to the business

    Each business carries risks along with their operations. The main risks to Goldspot's business model are listed below:

    Cash Flows From Consulting Income

    Goldspot currently generates revenue and cash flows from its consulting services. The availability of these sources of funds and Goldspot's ability to maintain a network and attract additional customers will depend on a number of factors, many of which are outside of Goldspot's control. A significant portion of Goldspot's revenues have come from four customers in short-term contracts. Goldspot's contracts are generally short-term and it is actively seeking to diversify its customer base with longer-term contracts. The loss of any one of its customers or the inability to attract additional customers will result in a material adverse effect on the business and may adversely affect revenues going forward.

    Intellectual Property Risk

    The ownership and protection of Goldspot's intellectual property rights is a significant aspect of Goldspot's future success. Currently, Goldspot relies on trade secrets, technical know-how and proprietary information to protect its intellectual property. Goldspot also attempts to protects its intellectual property by entering into confidentiality agreements with parties that have access to it, such as business partners, collaborators, employees and consultants. Any of these parties may breach these agreements and Goldspot may not have adequate remedies for any specific breach. In addition, Goldspot's trade secrets and technical know-how, which are not protected by patents, may otherwise become known to or be independently developed by competitors, in which event Goldspot's business, financial condition and results of operation could be materially affected. An assertion by a third-party that Goldspot is infringing its intellectual property could subject Goldspot to costly and time-consuming litigation, which could harm its business. Goldspot's success depends in part upon it not infringing the intellectual property rights of others. However, Goldspot's competitors, as well as a number of other entities and individuals, may own or claim to own intellectual property relating to Goldspot's industry or, in some cases, its technology. Goldspot has not been subjected to any claims of intellectual property rights infringements in the past but as it develops more of its own applications and meets additional client specific requests, it may be exposed to greater risk in the future. Any claims or litigation could cause Goldspot to incur significant expenses, and if successfully asserted against Goldspot, could require that Goldspot pay substantial damages or ongoing revenue share payments, indemnify its customers or distributors, obtain licenses, modify products, or refund fees, any of which would deplete Goldspot's resources and adversely impact its business.

    Investment Risks

    Through its investing division, Goldspot may acquire securities of public and private companies from time to time, which are primarily junior or small-cap companies. Poor investment performance could impair revenues and growth. The market values of the securities can experience significant fluctuations in the short and long term due to factors beyond Goldspot's control. Market value can be reflective of the actual or anticipated operating results of the companies and/or the general market conditions in a specific sector as a whole, such as fluctuations in commodity prices and global political and economic conditions. Goldspot's investments will be carried at fair value, and unrealized gains/losses on the securities and realized losses on the securities sold could have a material adverse impact on Goldspot's operating results. There is no assurance that Goldspot will be able to achieve or maintain any particular level of investment return, which may have a material adverse impact on its ability to attract investors. Furthermore, the junior mining space tends to be more volatile than the general market indices. This volatility combined with negative or poor performance could combine to lead to a reduction in investor interest.

    Cyclical Downturn

    A significant operating risk affecting Goldspot is a downturn in demand for its services due a decrease in activity in the mining industry. A severe and persistent downturn in the mining industry would have severe consequences on the business of Goldspot. In many cases, capital markets are the only source of funds available to junior mining companies and any change in the outlook for the sector or the lack of success of a specific exploration program can quickly impair the ability of these juniors to raise capital to pay for their consulting services.

    Limited Operating History

    Goldspot began carrying on business in 2017 and started to generate significant revenue from its operations beginning in December 31, 2018. Goldspot is therefore subject to many of the risks common to early stage enterprises, including under-capitalization, cash shortages, limitations with respect to personnel, financial, and other resources and limited revenues. There is no assurance that Goldspot will be successful in achieving a return on shareholders' investment and the likelihood of success must be considered in light of the early stage of operations.

    "The chairman of Barrick Gold Corp. made a bold prediction late last year: With the help of artificial intelligence and other digital tools, the world's largest gold miner would become a technology company that just happened to be in mining."

    submitted by /u/QuietWaters
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    Psycho Market Recap - Tue Sept 14

    Posted: 14 Sep 2021 01:26 PM PDT

    Despite breaking a five-day losing streak yesterday, stocks once again fell today, with the three major indexes and the Russell 2000 (IWM) finishing firmly in the red as market participants digested new economic data and continue monitoring the coronavirus Delta variant situation in the US, which may finally be cresting. The Labor Department reported that its Consumer price index (CPI), which tracks the price of a weighted average market basket of consumer goods and services purchased, rose at its slowest pace in six months in August, suggesting that while the inflation rate may remain high for a while due to supply-side constraints, it's likely the rate of increase has already peaked. Core CPI, which excludes volatile food and energy prices, increased 0.1% last month, the smallest gain since February and below the 0.3% rise in July. On a year-on-year basis, CPI has decreased to 4% from 4.3% in July, an encouraging sign. Economists polled by Reuters had forecast the core CPI gaining 0.3% and the overall CPI rising 0.4%. It may not seem like it but this is a large month-to-month change. The Fed's preferred inflation measure for its flexible 2% inflation target, the core personal consumption expenditures price index, increased 3.6% in the 12 months through July after a similar gain in June. August's data will be published later this month. The CPI report comes at a time when the market's attention is firmly focused on when the Fed will announce it will start scaling back pandemic-era quantitative easing. Powell has offered no signal beyond saying it "could be this year." Other members of the Fed have been more hawkish in their stance. As I have reiterated more times than I can count, I remain unconcerned with tapering talks (see the 2013 Taper Tantrum). I remain bullish until the Fed begins considering interest rate hikes, at which time I will reassess. In positive news, there are signs that the wave of coronavirus Delta variant cases in the US may be cresting. The seven-day average of daily Covid cases is about 144,300 as of Sept. 12, according to data compiled by Johns Hopkins University. That figure is down 12% over the past week and 14% from the most recent peak in case counts on Sept. 1, when the country was reporting an average of roughly 167,600 cases per day. Dr. Arturo Casadevall, Chair of Molecular Microbiology and Immunology at Johns Hopkins University said, This is good news.

    It could represent that we have reached a peak and we are now on the way down." As of Sept 12, 54.4% of the US population is fully vaccinated while 63.8% have received at least one dose of either Pfizer (PFE) or Moderna (MRNA). Highlights - Yesterday, according to a report by the Financial Times, the CCP intends to break up Alipay, the financial super-app owned by Jack Ma's Ant Group that has more than $1 billion users, and force the creation of a new entity for the company's lending unit. The plan will also see Ant turn over user data that underpins its data decision to a new credit scoring joint-venture which will be partly state-owned. https://www.ft.com/content/01b7c7ca-71ad-4baa-bddf-a4d5e65c5d79 - Boeing (BA) raised long-0term demand forecasts today, signaling the company expects a snapback in commercial air travel once coronavirus Delta variant fears temper. - Microsoft (MSFT) outperformed after Morgan Stanley released a report saying it was expecting a 10% dividend hike. - China, the world's biggest vehicle market where regulators are implementing new rules on data protection, is developing machines that will be able to track data sent abroad by cars, a government-backed agency said on Tuesday. - Last week, a judge in California sided with Epic Games and issued Apple a permanent injunction against their App Store policies. This move opens the door for developers to offer customers third-party payment options that do not force developers to pay Apple's 15-30% commission. This is massive for companies that make a lot of their revenue through the app store. - A cyber surveillance company based in Israel has developed a tool than can break into Apple iPhones with a never-before-seen technique for at least six months, internet security watchdog group Citizen Lab said on Monday. The discovery is important because of the critical nature of the vulnerability, which affects all versions of Apple's iOS, OSX, and watchOS. Apple confirmed the vulnerability and said the issue has been fixed in today's software update.

    • ViacomCBS (VIAC) will be restructuring Paramount Pictures amid a broader management shake-up, according to a report by the Wall Street Journal. The realignment will see Paramount focus primarily on making content for sister cable and streaming networks.

    No target prices today apologies

    "Learn as if you will live forever, live like you will die tomorrow." — Mahatma Gandhi

    submitted by /u/psychotrader00
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    top 10 list: Most Pessimistic Stocks in the news (09/11 - 09/14)

    Posted: 14 Sep 2021 07:25 PM PDT

    top 10 list: Most Pessimistic Stocks in the news (09/11 - 09/14)

    Here is a compiled list that we pulled for the mood of the market when looking at the MOST PESSIMISTIC TICKERS featured in this week of (9/11-9/14)

    1. $NVDA Nvidia 🥇

    2. $AMZN Amazon 📷 🥈

    3. $PH Parker-Hannifin 🥉

    4. $MU Micron

    5. $INTU Intuit

    6. $FB Facebook

    7. $NFLX Netflix

    8. $GOOGL Alph. Cl. A

    9. $TMUS T-Mobile

    10. $T AT&T

    bonus: $PEP 📷

    ​

    https://preview.redd.it/3avya5z6vkn71.png?width=410&format=png&auto=webp&s=ece056f19e212246df629c21eda1411376036764

    submitted by /u/babbldev
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    $MLFB is continuing to add high caliber executives with extensive NFL experience and connections

    Posted: 14 Sep 2021 05:32 PM PDT

    Significant Events

    On September 7, 2021, the Company announced the addition of Tom Lewand, former President and CEO of the Detroit Lions, as a Special Executive Consultant. Mr. Lewand was with the Lions for 20 years, serving as its Executive Vice President and COO, and President and CEO from 2008 to 2015. During his tenure he supervised the design and development of Ford Field, and held key positions at the NFL League Level, including a member of The Super Bowl, Collective Bargaining, and Draft Committees.

    Additionally, the Company has engaged the following parties as consultants:

    · Rick Nichols – Chief Operating Officer. A University of Houston graduate, Rick has held key front office executive positions with NFL teams for over 27 years of his professional sports career.

    · Steve Videtich – Assistant to Director of Football Operations/General Managers – With over 20 years of experience working as or with professional football players in the AFL, Steve brings a unique skill set to the Company. Having played for 13 years in the AFL then working both in the league and team front offices, Steve understands the challenges involved with managing a professional sports organization.

    · Bruce Wick - Director of Equipment. Bruce is a former NFL, XFL and United Football League equipment manager including the San Diego Chargers.

    · Karen Dominy – Director of Travel and Transportation. Karen brings significant travel and transportation logistical experience to the Company.

    submitted by /u/REITgrass
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    FCEL stock trade after good earnings

    Posted: 14 Sep 2021 06:34 PM PDT

    FCEL stock trade after good earnings

    ​

    https://preview.redd.it/nzca8lbngkn71.png?width=742&format=png&auto=webp&s=f0d8b51e520dfea0824703a012d1088b7d5f985d

    Today during the pre-market hours $FCEL started moving up due to good earnings, I thought it was going to be a good opportunity if the trend held, oftentimes we see companies with good earnings and a really bad reaction of the market to just fade the whole day but that was not the case in $FCEL today.

    https://preview.redd.it/ge8kc7geikn71.png?width=824&format=png&auto=webp&s=a0ce168c5544272982f7c843164337c562083a45

    $FCEL dipped under VWAP during the first 2 minutes right out of the gates, the image above shows a 1-minute time frame chart and how the price was behaving early today, I decided to wait because I have seen this happen too many times and after VWAP was reclaimed I took a trade at 6.23 as my entry point risking VWAP support hold for a continuation towards the upside.

    https://preview.redd.it/g4qu5vl5ikn71.png?width=521&format=png&auto=webp&s=ecc0d6656b0340c650e2a758a6c5a9a6c002d84e

    I was ready for a few levels coming into play from the daily chart.

    https://preview.redd.it/7qoaotzcjkn71.png?width=410&format=png&auto=webp&s=70ee0ca008c4edf42060650fbf0f7659d8900cb8

    https://preview.redd.it/xllauxjejkn71.png?width=522&format=png&auto=webp&s=da50f4fd1cf545612590ff854d8c17c3a7436e81

    While many would look at that prior image where I was saying I already took 1/2 of my position out at 6.46 and might make the argument that I was being extremely conservative here or even call me a scalper I rather see it as getting paid for my effort and then letting the rest of my position give me the real winner since I was already sitting in the driver seat and I was already well compensated for the first part of that trade, the reason why I took 1/2 out at 6.46 is because 6.50 was a psychological resistance level and usually people look to sell around 1/2 and whole dollar areas.

    https://preview.redd.it/scw4ez27kkn71.png?width=522&format=png&auto=webp&s=ae416819d7809f2c12bcc948810f74cb04285e2a

    Now that 6.50 was already broken I can let the rest of my position run towards the next spot I was looking for resistance, the whole dollar 7 spot.

    https://preview.redd.it/7fwix5ifkkn71.png?width=524&format=png&auto=webp&s=6f9f3e1071de49951b956854496d96603fbe1f0c

    Here you can see how that last 5 five-minute candle picked up a lot of volume, at the moment of this screenshot there were 5.5 million shares traded just in that 5 minute candle.

    https://preview.redd.it/9f2debyskkn71.png?width=522&format=png&auto=webp&s=189a5e12fbfa4fadb3ebb18bd4cde3bcd95edf9e

    Here you can see how we got to the price I was looking for to exit the rest of my position, in 1/2 of my position I was able to capture a sizeable gain being that my entry was 6.23 and I rode it all the way towards the 7 dollar mark.

    https://preview.redd.it/tjydrv49lkn71.png?width=523&format=png&auto=webp&s=5808663d9091346f3b817b9cbdf6b8ed6f509b3e

    There were other good movers today like $MMAT and also $BLU that one particularly was kept in the watch list into today for a possible continuation trade and I can honestly say It was a fantastic mover today.

    submitted by /u/DrioMarqui
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    yesbank

    Posted: 14 Sep 2021 08:40 PM PDT

    Elizabeth Warren calls out Crypto Exchanges for shutting off at the same...

    Posted: 14 Sep 2021 08:36 PM PDT

    YoLi

    Posted: 14 Sep 2021 02:27 PM PDT

    Who wants to make money this Week? Buy ILUS, they will Up List to NASDAQ , they will have a Stock Reduction Restructure, They Will Aquire 10 new profitable companies over the next 30-90 days. Big Announcements Releasing soon.

    Posted: 14 Sep 2021 08:03 PM PDT

    Calculating Apple's Future Stock Price

    Posted: 14 Sep 2021 07:41 PM PDT

    Who else thinks this is what's coming?

    Posted: 14 Sep 2021 07:23 PM PDT

    Uranium will help reach our Green Energy needs

    Posted: 14 Sep 2021 11:24 AM PDT

    Uranium Energy will be an important factor in reaching our green energy goals. A great example being France, meets 70% of its electricity needs with Nuclear Power.

    In addition, Nuclear Power is expected to grow in importance and efficiency with a possible transition from Fission to Fusion power. Fusion power has the capability to provide a multiple amount of power more than Fission and increased efficiency. Many people, such as the WallStreetBets community has taken notice. Uranium Stocks Jump as Reddit's WallStreetBets Goes Nuclear - WSJ

    Here's why Nuclear can help close the gap to zero carbon emissions.

    MIT recently did a study highlighting the importance of diversity in electricity production: Deep Decarbonization of the U.S. Electricity Sector: Is There a Role for Nuclear Power? | MIT Global Change . Nuclear deserves a seat at the table. Today Nuclear Power generates 50% of non carbon electricity in the US. As the conversation about our green energy future continues lets not forget about nuclear and how we can make it safer by upgrading existing plants with safety improvements. Nuclear runs 95% of the time vs it's counterparts which need wind or sun to operate. In addition, a lot of trees have to be cut down for wind and solar. It's clear a mix of energy production options are key.

    Some companies are ahead of the coming transition: 6 Minute CEO - Uranium Energy Corp. - Amir Adnani - YouTube.

    submitted by /u/capex-
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    FOUR - inspiration launch

    Posted: 14 Sep 2021 06:33 PM PDT

    Tomorrow around approximately 8pm (weather permitting) the inspiration mission will launch four astronauts in to orbit for three days.

    I'm super pumped for the launch. I think it's a great step forward for civilian space travel. (Bezos and Branson just went to the upper sky IMO) But I haven't seen the same kind of media buzz about the inspiration mission.

    On the the stock portion. The Founder and ceo of shift4payments will be on that rocket ride. I was thinking that there would be some movement up or down based on this. Bransons virgin galactic mission moved SPCE a lot obviously. I'm thinking this will give FOUR a nice little bump up as well.

    submitted by /u/QuantityAccording750
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    Discover Financial Services (DFS), seems interesting?

    Posted: 14 Sep 2021 06:14 PM PDT

    I think DFS could be a good play. The company is diversified with a strong customer base. From a valuation standpoint, it catches my attention. The financial statement show growth and consistency. When comparing to other companies in this industry it could have some room to grow as well.

    With that being said, I'd like to hear some thoughts. What have I missed? Pros and cons.

    I personally don't use Discover, I'd like to hear from some personal experiences.

    I did a little write up here: https://ten-investments.blogspot.com if you'd like to read more about the company.

    submitted by /u/Revolutionary-Cry-38
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    Interesting development on too big to fail

    Posted: 14 Sep 2021 08:15 AM PDT

    Google Takes Giant Step Towards Powering Blockchain-Based Web 3

    Posted: 14 Sep 2021 03:45 PM PDT

    Revenue Shortcomings Sink Oracle Stock

    Posted: 14 Sep 2021 05:26 AM PDT

    Shares of Oracle (NYSE: ORCL) dropped nearly 2% in after-hours trading Monday after the software company posted mixed earnings.

    The Good: Earnings per share in the quarter reached $1.03, better than the projection of $0.97. Guidance for the upcoming fiscal year was also strong.

    The Bad: Oracle reported revenue of $9.73 billion, short of the projection of $9.75 billion. And while the company's cloud business grew, it did not keep up with competitors.

    Numbers: Oracle's share price is near an all-time high. It is up 39% in 2021, but down 2% during the last month.

    Final Thoughts: It is clear that Oracle is not the most loved legacy tech company. While revenue is up year-over-year, its competitors are growing faster. Oracle needs to catch up.

    Hope you enjoyed this commentary. Please subscribe to Early Bird, a free daily newsletter that helps you identify investment trends: https://earlybird.email/

    submitted by /u/MrComedy325
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    LINE NOW: SEC Chair Gary Gensler Testifying Before The Senate

    Posted: 14 Sep 2021 08:48 AM PDT
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