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Company
TheRetirementSolution.com Inc.
110 William Street, 22nd Floor
New York, NY 10038
Phone: (212) 227-2242
Fax: (801) 273-9314
www.theretirementsolution.com
Contact
Bill Kosoff, CFO
Phone: (212) 227-2242
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Share Data
Symbol: (OTCBB: GISV)
52-Week Price Range: $0.09 - 0.44
Shares Outstanding: 246 million
Market Cap: $23.6 million
Balance Sheet Data
(as of March 31, 2008)
Total Assets: $31.8 million
Long-Term Debt: $3.9 million
Shareholders’ Equity: $23.3 million
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The Internet has leveled the playing field by providing a wealth of financial information to investors. Detailed data and analysis tools once accessible only to the research departments of large corporations are now readily available.
The investment community has grown rapidly as a result. Today, two out of every three Americans own shares in publicly-traded companies, and more than 90 million investors in the U.S. are involved in mutual funds.
However, while a vast quantity of investment information is now available, the insight and expertise to make sense of it often remains elusive. TheRetirementSolution.com (OTCBB: GISV), a fully-integrated provider of financial information, financial education, and investor services, has created a one-stop shop where investors can gain a better understanding of the stock market and the intricacies of investing.
Under the brand “In The Black Investing,” TRES provides subscribers with small-, mid-, and large-cap investment portfolios at one low-cost subscription rate. It offers 100 stocks for the first two portfolios types and 50 stocks for large caps.
The portfolios are compiled by StockDiagnostics.com, with which TRES has an exclusive partnership. The independent research firm tracks stocks by focusing on operational cash flow rather than earnings per share ratios. TRES also provides access to StockDiagnostics.com’s online analytical stock selection system tools and online updates, which include real-time changes to the portfolios.
“We have tremendous marketing know-how in terms of acquiring customers, as well as a platform that delivers value education at low costs compared to some of the larger competitors,” says Nicholas Maturo, CEO of TheRetirementSolution.com. “We also have the ability to deliver a tremendous amount of content online.”
Driven by the opportunity to create a company with diverse services in a sector ripe for consolidation, Maturo came out of retirement to join TRES in 2007. As the former CEO of EduTrades Inc., a provider of educational investment courses, Maturo grew the company from $2 million to $120 million and garnered more than 100,000 new customers in five years. He previously served in a number of executive positions at Philip Morris’ Kraft Foods and was president and COO of the Whitney Information Network.
“I decided a year ago that if I’m going to do this again, I want to create something with greater reach and more services than just education,” Maturo says. “Today, we are the only pure-play public company providing investor education and investor services.”
TRES recently acquired Investment Tools and Training and the business of Razor Data, two privately held companies based in Salt Lake City, Utah. ITT’s goal is to equip students with financial knowledge, skills, and investing habits through a diversified and personal education and training system that includes multiple delivery formats such as live webinars, recorded webisodes, training symposiums, coaching, mentoring, investor rooms, and newsletters.
Razor Data provides complete turnkey solutions to its customers in the financial community, including stock market information and tools, comprehensive database creating and management, distributed web hosting and network environments, and complete e-content creation and management.
“These two companies are creating the financial platform on which we’re going to build additional services,” Maturo says. “Razor Data’s revenue in 2006 was $4.5 million, with a net income of $3.1 million.”
TRES doesn’t require any significant capital investment and currently generates enough cash to fund operations. “Since capital investment in this sector is essentially done, and very little needs to be upgraded, it’s all driving down to the bottom line in terms of free cash flow,” Maturo says.
June 2008 marked the launch of the TRES website alongside a national marketing campaign aimed at creating brand awareness for its portfolio business. Driving the campaign is TRES’s marketing partner, Extreme Excellence LLC, which created MyStockTools LLC to focus on expanding TRES’s customer base, web-driven marketing, regional and specialized seminars, client referral programs, and alliance marketing.
As part of its marketing strategy, TRES works with half a dozen partners that promote its products, including Evolution Group, Click-to-trade.com, and Prosper Marketing Group. Phil Town, a high profile investment guru and author of Rule #1, is also a promoter. “The marketing partners take risks but also get a share of the revenues,” Maturo says. “We haven’t had to put up a single dollar in marketing since we acquired these companies.”
For the last two years, TRES portfolios have been successful at beating the major indexes. As of January 21, 2008, each of the company’s portfolios have significantly outperformed the Dow Jones, Russell 2000, and S&P indexes. Its large-cap portfolio generated year-to-date returns of 2% versus the S&P 500’s decline of 7.9 %. In the same period, its mid-cap portfolio rose by 1.9% versus a drop of 9.7% for the Russell 2000. And its small-cap portfolios generated a gain of 1.2% compared to a loss of 9.5% for the S&P 600.
In 2007, its large-cap portfolios generated a return of 16.8% versus the S&P 500’s 3.6% gain. The 52-week return for the mid-cap portfolio was 11.8% compared to a decline of 2.7% for the Russell 2000. Its small-cap portfolio posted a gain of 10.2% compared to a loss of 1.2% for the S&P 600.
Management attributes several factors to the success of its portfolios. First, portfolio recommendations are selected from a pool of companies that rank among the top 5% of companies with the best cash flow metrics according to StockDiagnostics.com. Portfolio recommendations are constantly monitored for changes in cash flow and other metrics. If warranted, adjustments are made. The three portfolios are more diversified than most mutual funds.
As the company continues to gain visibility and expand its market niche, Maturo does not foresee any serious competition arising from larger public companies. “The larger companies don’t play in these small sectors,” Maturo says. “They’re good at the large-volume delivery of services. And since there’s a tremendous diversity in the broad-based financial sector, there’s a lot of niche structure, which allows for consolidation over time.”
With more Americans investing in the stock market and other investment vehicles than ever before, the demand for financial education and management is expected to grow. To enhance its market share, TRES is looking to acquire more companies to expand its capabilities and offer more services.
RISKS: TheRetirementSolution.com faces competition from a number of larger financial news organizations and information sources, including print publications, television and radio analysis, and other Internet information service provider. Competition may result in price reductions, decreased gross margins, and loss of market share.
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