Transcript How to Mine WealthTracker Alerts

Mining WealthTracker Alerts
April 7, 2009
Track wealth events
• Cash and tax obligations are generated
by:
• - stock sales
• - company sales
• - IPO’s (sometimes)
• These create tax planning and gift
opportunities.
Wealth indicators
• While not necessarily immediate cash
sources, wealth is also indicated by:
• - executive positions,
• - stock holdings, and
• - new financings.
Types of Alerts
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People in Motion
Stocks Transactions (Sales)
New Execs Added
Mergers & Financings
WealthMonitor events
People in Motion
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New appointments
Focus on:
- titles (the “c’s”, like CEO, CFO, CTO)
also “partner” & “founder”
- companies (hot +/or big)
ex: energy (solar) or maybe IBM
Stock Transactions
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Purchases, Sales, Options, Holdings
Focus on:
- sales over preset target (ex $1M).
- holdings over preset target (ex $2M).
- caution: consider if option exercise
costs actually reduce proceeds.
• - note stock gifts (look up values).
New Execs Added
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Sometimes repeats “People in Motion”
Focus again on:
- titles
- companies
- also consider career history
ex: was a past company sold? Is this
a serial CEO or entrepreneur?
Mergers & Financings
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Lists co. sales, purchases, & financings
Focus on:
- co. sales over preset target (ex $10M)
Do not focus on:
- co. purchases & financings
- these are not wealth events
Company sales
• - ignore co. division or subsidiary sales
between companies (focus on $ to
individuals/owners)
• Focus on:
• - owners, founders, CEO’s, top mgmt.
• - in the absence of better information,
assume 20% minimum to management.
• - consider venture funders in some cases
(20% of firm’s profit goes to vc manager).
Wealth Monitor
• Gives early warnings and rumored
activity (some unconfirmed)
• Can be particularly useful intel for
known big prospects. (Fewer surprises)
• Can turn up new prospects not seen
before (where no deal was previously
done)
Now What?
• Set up a tracking, rating, and alerting
system for events.
• Examples:
• - paste confirmed data into database.
• - email wealth event news to GO’s.
• - update ratings when data confirmed.
A Few Notes
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Confirm the data (use other resources).
- First, make sure this is your person.
- See if other prospects involved.
- Is transaction what you think it is?
- Go to SEC site, website, etc.
Notes (cont2)
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Extend the data (more & others).
- “google” transactions; learn more.
- was there a big profit?
- was there a founder not mentioned?
- who financed the company?
- did an exec have past deals too?
Notes (cont3)
• Focus on the money. A seller is liquid.
• Caution: make sure not a “take-under”.
• Follow “the whales” further (check out all
angles of a big deal).
• A $200M+ deal probably makes big money
for all management, founders, and investors.