Atlantic Equity Research is an independent financial research firm. The mission of the firm is to provide actionable investment recommendations to hedge fund companies. We aim to provide in-depth information and analysis, while at the same time only focus on an idea in which a money making opportunity is within a 6 to 9 month time frame. The research methodology of the firm is to combine earnings quality analysis techniques and primary research. Atlantic Equity Research’s main focus is on but not limited to the consumer product, building product and supply, retail, technology and telecom industries.

Atlantic Equity Research is an independent financial research firm. The mission of the firm is to provide actionable investment recommendations to hedge fund companies. We aim to provide in-depth information and analysis, while at the same time only focus on an idea in which a money making opportunity is within a 6 to 9 month time frame. The research methodology of the firm is to combine earnings quality analysis techniques and primary research. Atlantic Equity Research’s main focus is on but not limited to the consumer product, building product and supply, retail, technology and telecom industries.

- Reports - PTC Report

Atlantic Equity Research is an independent financial research firm. The mission of the firm is to provide actionable investment recommendations to hedge fund companies. We aim to provide in -depth information and analysis, while at the same time only focus on an idea in which a money making opportunity is within a 6 to 9 month time frame. The research methodology of the firm is to combine earnings quality analysis techniques and primary research. Atlantic Equity Research’s main focus is on but not limited to the consumer product, building product and supply, retail, technology and telecom industries. Atlantic Equity Research’s research methodology is set up to take advantage of the ongoing realties of Wall St., in which the “game” is set up so that inevitably many stocks become very overvalued, and in some cases undervalued. A loop of information about the fundamentals of the business travels amongst analysts, investment bankers and company management that becomes consensus opinion. Often this consensus opinion, “the story”, is wrong, but the stock goes up because the story is being told well. In many cases, earnings quality analysis techniques will show that there are divergences in the true earnings of the company and what is being reported. And stocks will climb despite this divergence. Customers, consultants or distributors can have vastly different opinions of the company, and its underlying stock, than investors, but the stock will still go up. And stocks can go up for months, and some times even years, despite evidence to the contrary. Stocks become undervalued when all sales efforts are being put into driving the stocks of a particular sector at the expense of other sectors, and then momentum takes over, and the stocks of other sectors are left behind. The rise of technology stocks during the late nineties at the expense of many other sectors is a classic example of this phenomenon.

The research methodology of Atlantic Equity Research is to identify specific situations in which the underlying fundamentals of the business, and its true earnings and cash flow are at their maximum divergence point from the stock price, and what is being told about the business by management, and what is being reported for earnings. We must see a combination of bad fundamentals and a stock that has made a considerable run based on aggressive public relations tactics. We make calls to customers, distributors, salespeople, consultants, government agencies, resellers and competitors as well as to management, and then combine the information with a thorough forensic accounting analysis of the financial statements. This in- depth analysis allows us to know when the time is right, and the underlying stock has become fully removed from reality.

Because we spend so much time on each idea, and are extremely selective before issuing a recommendation, we assume that each investment recommendation will give a return of at least 40 %, with a downside risk of a maximum of 15%. We are aiming to hit home runs and not singles and doubles.

We publish a monthly commentary on macro economic/ market issues that we believe are important to investors. The goal of the commentary is to try to tell people something they didn’t know, or have them look at an issue in a different way than is being described in the mainstream press.

- November 2006
- August 2006
- July 2006
- May 2006
- April 2006
- March 2006

Read my new report about how PTC's CEO and management has made what I believe to be numerous material misstatements about its segment results, how it derived at its results, as well as making material misstatements about the capabilities of its products and the market acceptance rates of its products. In my opinion this is a combination of the Theranos fraud story and Under Armour fraud story wrapped into one.

Atlantic Equity has used about 25 ex- employee and reseller sources for the research to uncover what I believe to be a multi - year attempt by PTC's management to trick investors into thinking it is a high growth software company. It isn't.

In my opinion the company has used the change to a new revenue recognition rule and the change to a new subscription billing method to cover up its real results.

- Read: PTC Report

ATLANTIC EQUITY RESEARCH

Phone: 774.201.9087
Email: jgagan@atlanticequityresearch.com