Sign up today for your FREE OFS Newsletter Plus FREE year's subscription to
Equities Magazine:




  Index     74.3102  
-2.8961     -3.76%


Offer 125x125button

You are here: Home > About Michael Markowski
About Michael Markowski
 
 
In 2002 Michael founded StockDiagnostics.com, a subscription website that utilizes proprietary cash flow metrics to monitor the cash flows (CFFO, an acronym for Cash Flow From Operations) of approximately 10,000 publicly traded companies.

 

Markowski founded StockDiagnostics.com after he utilized proprietary software to perform an autopsy on Enron shortly after it declared bankruptcy in late 2001.  After performing the autopsy Markowski determined Enron’s cause of death.  He named the cause of death “The EPS Syndrome”, which occurs when a company’s negative cash flow per share exceeds its reports record earnings per share over the same period.  In back testing the “The EPS Syndrome’s” algorithm Markowski found that prior to Enron’s demise the syndrome had caused the death of approximately 300 public companies including appliance manufacturer Sunbeam Corporation.  Like Enron, Sunbeam died suddenly and under mysterious circumstances shortly after it had reported record earnings per share.

 

In August of 2002, Markowski issued a bankruptcy warning for The Fleming Companies, a dividend paying company listed on the NYSE because it had been diagnosed by StockDiagnostics.com in May of 2002 as having “The EPS Syndrome” and it was running out of cash.  At the time Fleming’s shares were trading at $23.  It had over 23,000 employees and was generating annualized revenue of approximately $15.6 Billion.   In early 2003, Fleming filed for Bankruptcy and it was subsequently liquidated.

 

Markowski is probably most famous for his prediction in a September of 2002 article in the Chicago Tribune.  In that article he stated that Sears & Roebuck was having problems in collecting its credit card receivables.  Sear’s CFO, Paul Liska who was also interviewed for the article vehemently disagreed with Markowski’s analysis.  Liska denied that Sears had any problems with Sear’s credit card receivables and said that Markowski’s "analysis is flawed".  Six weeks later Sear’s shares decline by over 50% to a 12 year low of $19 (a decline of from $49 when StockDiagnostics.com issued its initial warning) after Sear’s disclosed that it was having major problems in collecting its credit card receivables.  

 

Markowski is also a regular writer for Equities Magazine.  He is a member of the magazines’s annual “Favorites of the Famous” article wherein a number of professionals give their pick for each upcoming new year.  Since joining the elite group in 2005, Markowski has ranked no lower than 4th for each year.  Every one of his picks has outperformed the major market indices.

 

Markowski’s picks for Favorites of the Famous: 

Markowski’s picks for Equities Magazine’s

Annual “Favorites of the Famous” article

Year

Pick

Return

Rank

2005

United Online

28%

3/11

2006

Info Crossing

50%

4/09

2007

Netscout Systems

27%

2/10

 

Virtually every major US business magazine including SmartMoney, Forbes, Fortune, Inc. Magazine, Business Week and Money Magazine have written articles about StockDiagnostics.com and Markowski.  In Fortune Magazine’s 2004 Investor’s guide issue Markowski was featured as being one of the “50 Great Investors”.  In that same article each of the 50 gave Fortune their best investment pick for 2004.  Markowski’s pick was Webex Communications at $19.00 per share.  The pick generated a return of 200% when, Webex was subsequently acquired by Cisco Systems for $57.00 in cash.

 

Most recently Markowski re-emerged on the scene for predicting downturns after he used his cash flow analytics to predict significant sub prime mortgage problems for the publicly traded brokerage firms in September of 2007 article that he wrote in Equities Magazine.  The shares of each of the five brokers he said to avoid have since fallen by 14.6% to 37.7%.  

 

In another September 2007, Equities article written by Markowski he recommended the purchase of shares in four companies in the online financial information industry.  Each of the four subsequently traded to five-year new highs in November and December of 2007.  

 

Finally, Markowski has had a knack for making recommendations on Internet related companies since 2002.  After making successfully recommending Yahoo, Ebay and Amazon in 2002 and 2003, Markowski in a June 2007, Equities Magazine article recommended that the shares of Amazon, Ebay and Yahoo be avoided.  He also recommended in the same article that the shares of Priceline.com be purchased.  As of March 1, 2008, the shares of the three that he said to avoid are all currently trading below their respective June 1, 2007, share prices and the shares of Priceline.com appreciated by 85% over the same period.

 

For Markowski’s top 10 Historical calls click here.  

 

 

Disclosure:  Michael Markowski, the founder of OnlineFinancialSector.com currently holds shares in the public companies recommended on the OnlineFinancialSector.com website and may buy or sell shares without notice.