Mark Clare - 8ackground/MaLerlals

Zack Mlller ulscusslon

SepLember 2011
!"# $%&'$(&)%'*
Woodward Pouse
1 Woodward SL
WelllngLon
P: +64-4-499-6320
M8L: +64-21-470227
Skype: markclare
1wluer: [valuecruncher
mark.clare[valuecruncher.com
www.valuecruncher.com
Mark Clare 8lo

PAGE 1
Mark ls Lhe founder of valuecruncher (www.valuecruncher.com) - a web-
based soware appllcauon LhaL provldes lnLeracuve fundamenLal valuauon
Lools for publlcly-Lraded companles.

umalr Paque wrlung on Lhe Parvard 8uslness 8evlew 8log neLwork:
1tockeJ, voloectoocbet, 5tock1wlts, ooJ mooy mote ote tbe leoJloq eJqe of
o tevolouoo - o tevolouoo lo wbot foooce bos beeo fot tbe lost sevetol
ceototles, ooJ wbot lt most become lo tbe 21st.
bup.//bloqs.bbt.otq/bopoe/2009/10/coo_qooqle_toke_oo_woll_st_ooJ.btml

8arrons:
w'v CO1 llN1 Ol foooclol oews ooJ Joto stteomloq Jowo ftom tbe
web-too mocb, lo foct. 5oclol-lovesuoq sltes llke 1tefs ooJ voloectoocbet coo
belp yoo slf tbtooqb lt polckly to foJ oot wbot teolly mokes yoot uckets uck.
8otb employ voloouoo moJels ote ofeo oseJ by woll 5tteet ooolysts fot tbelt
losutouoool clleots.
bup.//oolloe.bottoos.com/otucle/
585000142405297020J880104575419J71684659114.btml
vALuLC8unCPL8
Mark Clare 8lo (CCn1)

PAGE 2
Mark ls based ln WelllngLon, new Zealand - whlch ls noL Lhe nanclal markeLs
cenLre of Lhe unlverse. 1he new Zealand sLock exchange (nZx) bulldlng has an
elecLronlc dlsplay on Lhe ouLslde of Lhe bulldlng LhaL uses full company names
raLher Lhan sLock codes.

new Zealanders Lhlnk lnnovauon comes from Lhe edges - and LhaL ls were we
llve. WelllngLon ls home Lo people llke eLer !ackson (Lord of Lhe 8lngs Lrllogy
ulrecLor) and LLhan Suefel (from Amerlcan 8alleL 1heaLre) has [usL Laken over
as ulrecLor of 8oyal new Zealand 8alleL.

Mark has llved and worked ln norLh Amerlca and Lhe unlLed klngdom worklng
for large organlsauons llke Clugroup and bouuque advlsory rms. As well as
valuecruncher - Mark ls a parLner ln a bouuque new Zealand lnvesLmenL
banklng advlsory rm called Woodward arLners.

Llnks:
Llnkedln role - hup://nz.llnkedln.com/ln/markclare
Woodward arLners - hup://www.woodwardparLners.co.nz/
vALuLC8unCPL8
1he Cn-llne llnance Space - 1oday

PAGE 3
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- 8ackground
operauonal and
nanclal lnformauon
- Lxample - Annual
8eporLs
lnformauon
- Should l buy Lhls share?
- WhaL ls Lhls share
worLh?
- Lxample - 8esearch
8eporLs
Analysls
- 8uylng or selllng Lhe
share
- Lxample - Lhe buylng
or selllng of Lhe share
Lxecuuon
1he lnvesLmenL rocess
re-1993 Lhls process was domlnaLed by brokerage rms wlLh full-servlce oerlngs.
+,-./012+.,*345'$678(*9:%;<=>*"(?*@=>A*
orLals (?ahoo, ACL, MSn, Coogle, eLc) oer
Lhen exLend nance oerlngs. 8uslness model
ls adveruslng - free Lo consumers.
,.2B - 1here ls sull a pald markeL for deLalled
nanclal lnformauon (8euLers, CaplLal lC, eLc).
BCBDE2+.,* *345'$678(*9:%;<=>A*
ulscounL brokers (l.e. Charles Schwab, L1rade,
eLc) oer aL raLe commlsslon sLrucLures.
1,1FGH+H* *345'$678(*I"5*J%K$(*
lull servlce brokers provlde research reporLs Lo cllenLs + lndependenL
research.
3+H/EL2./H:
M$"#4N"7O% - llnanclal 8logs. user-generaLed conLenL (SeeklngAlpha) and
Lradluonal [ournallsm on Lhe web (1he 8uslness lnslder)
D8PP$(4NQ* - examples: SLock1wlLs, MoLley lool, WlklnvesL, CovesLor,
WealLhlronL
288#5*L'8O4?%'5*- valuecruncher, 1res
:I12*I1LLB,H*
,BC2R
1he Cn-llne llnance Space - 1rends and uncerLalnues

PAGE 4
vALuLC8unCPL8
!"#$%&'"()")*+%#,(&-"#,.#"/%"0%%1"2%$#.(&"()"*223$$(&-4"!&"3&2%$#.(&#5"()")*+%#,(&-"#,.#"2*31'")611"-*"%(#,%$"/.54"

*2/B,3H*

<= BS%&$78(* ;%&8P%5* "* &8PP8?4NQ* - execuung Lrades wlll conunue as a low-cosL buslness. 1here wlll be some geographlc-based
regulaLory moaLs - buL no ablllLy Lo generaLe abnormal reLurns. CLher parues could enLer Lhls markeL (l.e. porLals).
@= 3%"N)*8T*N'"?478("#*%U$4NQ*'%5%"'&)*- Lhe currenL model ls Loo expenslve and produclng research reporLs LhaL are complex and hard
for reLall lnvesLors Lo consume. 1radluonal equlLy research wlll head Lhe way of newspapers. 1here wlll be a space aL Lhe Lop-end for
pald research buL only a nlche.
V= +(O%5N8'*W(8X#%?K%*&8(7($%5*N8*4P6'8O%*- Lhe level of general lnvesLor knowledge conunues Lo lmprove buL Lhere sull remalns a
slgnlcanL gap beLween Lhe average reLall lnvesLor and Lhe corporaLe nance professlonal.
Y= -4("(&4"#* ;#8K5* "'%* 4(Z$%(7"# - hlgh-quallLy analysls conunues from blogs and 1wluer. 1wo models - aggregaung conLenL (l.e.
SeeklngAlpha) and Lradluonal [ournallsm on Lhe web (l.e. 1he 8uslness lnslder).

*E,DB/21+,2+BH*

<= +(?4O4?$"#*!H*D8##";8'"7O% - how wlll reLall lnvesLors choose Lo research lnvesLmenL declslons? lndlvldual analysls - reLall lnvesLors
(wlLh lmprovlng educauon) compleLe Lhelr own analysls on where Lo lnvesL - boLh quallLauve and quanuLauve. Collaborauve - reLall
lnvesLors look Lo communlues of lnvesLors for advlce on where Lo lnvesL - Lrack record ls vlLal.
@= -'%%* !H* L"4? - nanclal lnformauon has proven Lo be an lsolaLed area on-llne where pald models have worked (l.e. WS!). Movlng
forward - wlll reLall lnvesLors be prepared Lo pay for nanclal lnformauon or wlll free wln ouL?

*HDB,1/+.H*

.(* N)%* (%SN* 6"K%* X%* &8(5N'$&N* "* ;"54&* 5&%("'48* P"N'4S=* 2)%5%* 5&%("'485* "'%* (8N* P%"(N* N8* '%Z%&N* &8(&'%N%* O%'548(5* 8T* 68554;#%*
T$N$'%*5N"N%5*;$N*'"N)%'*N8*4##$5N'"N%*N)%*68N%(7"#*4P6"&N*8T*N)%*4?%(7[%?*N'%(?5*"(?*$(&%'N"4(7%5=*2)%'%*X4##*;%*&8P68(%(N5*8T*
"##*8T*N)%*5&%("'485*4(*N)%*T$N$'%*\*N)45*"("#Q545*45*4(N%(?%?*N8*%P6)"54]%*N'%(?5*"(?*$(&%'N"4(7%5=*
1he Cn-llne llnance Space - Some Scenarlos
PAGE 5
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-/BB*
L1+3*
D.FF1J./12+!B* +,3+!+3E1F*
:%*F4O%*+(*L$;#4&*
8eLall lnvesLors seek advlce from communlues of
oLher lnvesLors. 1rack record ls key - Lhls ls open
Lo abuse.
8eLall lnvesLors won'L pay for Lhls advlce.
CommunlLy owners seek models Lo moneuze Lhe
audlence noL Lhe conLenL - none ls lnlually
obvlous beyond adveruslng.
:4((%'5 - 1he MoLley lool, SLock1wlLs
L8'N"#5 - 8Au provldlng (mosLly) raw daLa.
H$6%'*D8PP8(5*
8eLall lnvesLors value analysls and Lools buL are
noL wllllng Lo dlrecLly pay. 1here ls a move from
Lradluonal on-llne nanclal lnformauon provlders
(l.e. CaplLal lC) Lo low-cosL/no-cosL provlders (l.e.
nanclal porLals). 7%#.(1" (&8%)#*$)" .&'" 2*$9*$.#%"
:&.&2%"9$*0%))(*&.1)")#.$#"#*"3)%"#,%").+%"#**1).
ay-walls come down - nanclal blogs are aL
Lhelr mosL lnuenual.
:4((%'5 - orLals and nanclal blogs
/8&W*HN"'5*
8eLall lnvesLors seek advlce from communlues of
oLher lnvesLors "(? are wllllng Lo pay.
l nvesLors make Lhel r Lradl ng accounLs
LransparenL on-llne. Successful lnvesLors open
Lhelr accounLs Lo acL as vlrLual fund managers.
vlrLual fund managers and communlLy owners
spllL a managemenL fee pald by lnvesLors.
:4((%'5 - CovesLor, WealLhlronL, eLc
L8'N"#5 - 8Au provldlng (mosLly) raw daLa.
:"##%?*^"'?%(*
8eLall lnvesLors value analysls and Lools. 1he
nanclal blogs conunue Lo exerL lnuence.
Powever Lhe pay-wall remalns aL Lhe WS! and on-
llne lnformauon provlders (8euLers, CaplLal lC)
have a valuable and growlng buslness.
:4((%'5 - 8euLers, CaplLal lC, 8loomberg
L8'N"#5 - CpporLunlLy Lo launch a low-cosL
dlsrupuon sLraLegy almed aL on-llne lnformauon
provlders (a good enough oerlng Lo LempL [for
example] CaplLal lC's cllenLs).
1he Cn-llne llnance Space - Some lLems 1o Look CuL lor
PAGE 6
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CJ/F - Could be a masslve game-changer ln Lhe space. Cpen-source daLa could drlve masslve
lnnovauon ln Lhe on-llne nance space. WhaL could happen?

HN8&W2X4N5 - uolng so much well. 1he currenL rock sLars. WhaL happens nexL?

2)%*-4("(&%*L8'N"#5*9G")88_^88K#%_%N&A*- So much reach buL so llule recenL lnnovauon. Why hasn'L
Lhere been Lhe lnnovauon we are all looklng for? WhaL could change - and wlll lL?

BP%'K4(K*0"'W%N5*- Puge poLenual. Wlll Lhe lnnovauon come from Lhere?

!"#$%&'$(&)%' - WhaL are we dolng wlLh Lhe slLe movlng forward?