We are independent. We do not have investment banking or trading revenue, or biases.
That means we are paid only by the investors and clients who read our research or receive our training.
We call it the Veritas Way.
Here is an interview with Anthony Scilipoti, Veritas President and CEO, with the Uncommon Sense Investor, explaining more about The Veritas Way.
We believe the decision to buy or sell a security is based on whether the underlying risk or opportunity is correctly reflected in the company’s valuation.
What does that mean? It means we dig through financial and non-financial facts looking for upside and downside catalysts. What we call: Flammable Items - risks and opportunities that when faced with a Spark, lead to material upside or downside.
Keep it simple
In most cases, we only issue BUY or SELL recommendations.
There is no need for you to read between the lines about what our recommendations REALLY mean.
While others may tell you to BUY or HOLD 90% of the time, our recommendations can be roughly balanced between BUY or SELL at any given time. Our track record proves this works.
No crystal balls
We work with intrinsic values calculated using discounted cash flow models. Our intrinsic values state what we think the stock is worth today, not what it may be worth 12 months from now or further off into the future.
Veritas Quality Ratings
We do a deep dive into each company’s disclosure and accounting to provide insight into risks that may be unknown or underappreciated by the Street.
Our Veritas Quality Ratings score each company out of 25 on five key risk metrics that have proven to affect stock price performance.
Accounting and Disclosure:
Accounting rules have become increasingly complex. We help clients navigate through accounting choices made by management to provide insight into the quality of earnings and operating performance.
The market often loses sight of fundamentals and gets caught up in the ‘story’. Our analytical techniques ensure that the ‘story’ is supported by the facts.
Understanding how an executive team is compensated provides insight into a company’s business objectives and accounting choices.
Balance Sheet Risks:
Time and again, accounting scandals and unexpected losses prove that what is ‘off’ balance sheet is often more important than what is ‘on’ balance sheet. It is only after a thorough understanding and review of financial disclosures that such exposures can be uncovered.
Cash Flow Sustainability:
Companies go bankrupt because they run out of cash, not earnings. Cash Flow sustainability is the key to operational health.