Investing in Consumer Spending Data

[andrewstevens]

Hey, we're just a small group of investors that are trying an long term investment idea to look at consumer spending data in relation to companies that are currently under or overvalued. We've created a site www.tradingfundamentals.com and a video to explain what we're trying to do. W're just interested in some early feedback in terms of the idea and whether you think this would be useful or not. If you have any suggestions from the site let us known.

 

[malaguti]

Hey, we're just a small group of investors that are trying an long term investment idea to look at consumer spending data in relation to companies that are currently under or overvalued. We've created a site www.tradingfundamentals.com and a video to explain what we're trying to do. W're just interested in some early feedback in terms of the idea and whether you think this would be useful or not. If you have any suggestions from the site let us known.

Hi Andrew, I've taken a look but I'm a little confused..I'll try and be constructive rather than just immediately dismissive, which was my original reaction.
Here's some observations
"TradingFundamentals allows individuals to invest capital with us to receive a high rate of return."
I though this was a concept, an idea? Yet your website states this as it can be achieved. If i were to look at your site and invest, you could easily be sued for misrepresentation, especially given this is an idea and I can use what you've just said above.
Anybody would think this was some sort of scam.

I didn't get an idea what level of return, only its "high"
Also, I don't see any measure of previous success

Also, and more worrying is the structure
"The fund structure is consructed in such a way to distribute profits from the fund in relation to the degree to which an individual updates their information the most reguarly"
So I invest 100k and person B invests 5k but person B updates his information more..I don't think thats fair at all. You mention 50% is based on initial size, but its my money has enabled you to make the return in the first place.
Also, how do you quantify that the data is the driving force behind the return, and not just the simple fact that more people bought into it.

I'm quite capable of making money from a rising stock, and guess what level of data I had about it?

There is so much wrong with this, I could go on.

Hope this has proven constructive

 

[andrewstevens]

Hi malaguti, thanks for your feedback, its difficult to guess how people will respond to a concept without feedback, but I can definitely see your point (it is intended as a genuine service).

The only other idea we had was to try and promote services and products from small companies representing penny stocks and see if people would buy them or not, i.e. just ask people would you buy this product or service yes/maybe/no and record this data over time.

If there was an increased interest in a product or service offered by a small company which is not currently yet reflected in the share price, we would let our users know in advance that this would be a good small cap stock to buy.

Or would you also be willing to enter data if you actually bought a product or service from a small company to let us know about changes in consumer spending, which we could pass on?

Does this idea seem less crazy and more practical? would you be willing to answer a few quick product related questions every time you visited the site to find companies that have a good product/service that are likely to grow (giving a good return from a penny stock)?

Any feedback would be fantastic (or from anyone else)??

 

[Stargunner]

What's your regulatory status?

This secondary idea seems to be a financial promotion, but not only that, it seems you would have an existing interest in the equities you're surveying. This would lead to being considered a pump and dump by some.

I think I see what you're trying to do. You would like to source investment ideas from peoples opinions and habits. This is a great idea for retailers, fashion brands and things. There's plenty of people who follow the idea of trading what you know, and one way to know things, is see them. If everyone is talking about getting their hands on Michael Kors watches, buy Michael Kors.

However you can't really run this viably as a kind of almost hedge fund. You're better off just setting up an investors club that shares information, perhaps having a high minimum threshold for sharing information and using forums.

 

[andrewstevens]

What's your regulatory status?

This secondary idea seems to be a financial promotion, but not only that, it seems you would have an existing interest in the equities you're surveying. This would lead to being considered a pump and dump by some.

I think I see what you're trying to do. You would like to source investment ideas from peoples opinions and habits. This is a great idea for retailers, fashion brands and things. There's plenty of people who follow the idea of trading what you know, and one way to know things, is see them. If everyone is talking about getting their hands on Michael Kors watches, buy Michael Kors.

However you can't really run this viably as a kind of almost hedge fund. You're better off just setting up an investors club that shares information, perhaps having a high minimum threshold for sharing information and using forums.

Thank you Stargunner for your great feedback. I completely agree with what you're saying. We would only be allowed to ask for a small deposit say $100, to access the service. However the only reason we incorporated the investment element was to give people some financial incentive to fill out surveys, we're looking at other ways of doing this.

Generally we have to give people a reason to use the service and provide good information that will benefit everyone, but the investment idea may be too complicated and misleading, like pump and dump.

However unlike pump and dump that artificially inflates a stock, we're more interested in looking at changes in the fundamental value of a stock from changes in consumer spending, to give a better idea of what the company is really worth for investment purposes.

We're trying to give people good information so they will come back, we're just trying to figure out how to draw in a large audience so we can provide valuable insights to everyone. If you have any ideas or more feedback always appreciated,

thanks!!

 

[Stargunner]

Can I confirm that you're UK based like your account suggests?

If yes, to do the promoting of the companies/their stock in the way you suggest you need to be FCA registered. Same for the investment side of things you suggested.

 

[andrewstevens]

Can I confirm that you're UK based like your account suggests?

If yes, to do the promoting of the companies/their stock in the way you suggest you need to be FCA registered. Same for the investment side of things you suggested.

No sorry, we're US based (need to change the country). But need to look into any regulatory requirements. Thanks for the information, we're still in the phase of just trying to get feedback from people, but we shouldn't neglect any regulatory requirements thanks!