Disclosure Insight^®

Frequently Asked Questions

1. Who is Disclosure Insight®? Disclosure Insight® is an independent provider of investment research. Originally founded as SEC Insight in 2000, we gained notoriety for pioneering the use of the Freedom of Information Act to find undisclosed SEC problems. To better reflect that our expertise in risk-profiling now goes well beyond SEC matters, in March 2008 SEC Insight, Inc. changed its name to Disclosure Insight, Inc.
   
   Disclosure Insight® remains a proud member of the Investorside® Research Association, a “non-profit trade association of investment research providers that do not engage in investment banking, company consulting or research-for-hire.”
2. What's a D.I. Report^®? Our primary product is a D.I. Report^®. Each D.I. Report^® represents an in-depth due diligence exercise that saves dozens of hours of your valuable time. It identifies, evaluates, and concisely summarizes 100 risk factors in six major categories for a 5 year period. See a Sample D.I. Report^®.
3. Okay, so what’s a D.I. Score™? The D.I. Score™ tells you how many of the 100 different risk factors we found for the company on which we wrote the D.I. Report^®.
4. How often do you publish D.I. Reports^®? As fast as we can get them done. Expect 2-5 new reports per week right now with the goal of updating them annually. We aim to have about 100 in the D.I. Database™ by the end of 2008.
5. How do I access materials on disclosureinsight.com? The good stuff, like complimentary information on undisclosed SEC probes, requires at least some kind of opt-in site registration. The best stuff requires you to be a subscriber. Once registered, your email address is your username. The site can send you a new password if yours is lost or forgotten. You can then re-set it to whatever you like. Our staff will not know your password.
6. How long does it take to produce just one D.I. Report^®? Quite a long time. We actually clocked this and found it takes a seasoned analyst at least 50 hours of dedicated time to produce just one D.I. Report™ from scratch. We’ve applied for U.S. patents for the D.I. Score™ as well as some of the design elements and efficiencies that help us get them done a bit faster. Still, it’s a labor intensive exercise that took us over two years to develop.
7. How do you decide on which companies to prepare D.I. Reports^®? One of the biggest drivers is those companies that we believe have undisclosed SEC probes (See below for how we know this). Over time, our goal is to have a database of thousands of these reports available to you. As we build the D.I. Database™ expect a mix of small, medium, and large-cap companies cutting across all industries.
8. Can we request you to work on companies for us? How about custom research? You can request companies but we cannot commit to when we will get to them nor can we provide the completed reports to you ahead of others. Sorry, but we do not perform custom research at this time.
9. Does Disclosure Insight® issue warnings? You bet! We worked hard to make sure this aspect of our predecessor SEC Insight work stayed intact. Whether the facts lead us to a negative – or positive – conclusion we’ll definitely say as much. As applicable, our irreverent commentary also remains.
10. Do you have a focus list? Yes, three of them.
    
    D.I. Focus List^®

    These are the companies that we judge to be troubled. The companies are potential short candidates as we expect the shares to deliver relative or absolute underperformance. The D.I. Focus List™ is updated by our analysts at their discretion. It is only available to subscribers.

    D.I. Watch List^®

    These are companies that have potential or confirmed undisclosed SEC investigations. Companies are placed on this list based upon data we acquire directly from the SEC under the Freedom of Information Act.

    D.I. Database^®

    This is a listing of all the companies on which we have D.I. Reports™ along with their D.I. Scores™.

    
    While we are in the process of introducing our services, the various lists will be available to both subscribers and those registered to receive the D.I. Mailbox™.
    
    Upon completion of the introductory period, the D.I. Focus List^® and D.I. Watch List^® will be limited to subscribers only.
11. Do you still file Freedom of Information Act requests to get data about undisclosed SEC problems? Approximately 2,500 a year. We release the FOIA data for free to anyone who registers for our opt-in email newsletter, the D.I. Mailbox™. It’s a great way to pressure the SEC to keep that pipeline of information open and flowing (yes, they have shut it in the past – we sued them in 2004 over that!).
12. As a non-subscriber you’ll tell me if a company has an undisclosed SEC probe? What’s the catch? The “catch”, if you’d call it that, is that in exchange for this valuable information we ask for the opportunity to keep you current on the latest reports we’ve published such that you might purchase one or become a full-service subscriber. We do this through the D.I. Mailbox™, an opt-in newsletter.
13. Do you give complimentary trials? Nope. We found most people don’t take them seriously. If you want a good sense of our research flow, register for the D.I. Mailbox™, our opt-in free newsletter. Not only will you get free updates on undisclosed SEC probes you’ll also see what D.I. Reports^® we’re out on. If you like one, buy it. Better yet, if you like a lot of them subscribe. Then you get our best stuff!
14. Can I talk to your analysts? Yes, but only if you are a subscriber. Those who signed-up for the D.I. Mailbox™ or who only purchase individual D.I. Reports^® cannot access our analysts. Sorry.
    
    Otherwise, and so long as you don’t brag about how warm it is where you are when it’s the middle of January here in Minnesota, we’re happy to hear from you. Please keep in mind that neither our reports nor any direct communications you have with our staff should be construed as investment advice.
15. Do you use blast voice mail? Yes, but again only for subscribers. This popular option is used by half of our subscribers because our blast voice mails do two things they like: None exceeds 60 seconds in length and most maintain a scrappy sense of playful irreverence that keeps this job fun.
16. What does Disclosure Insight® charge for the service? We charge by the user which means both small and large investment firms can easily afford it. A full listing of our products and services is available at our home page. Contact us at 763-595-0900 to request a pricing schedule suited to your particular needs.
17. I work in a vote shop. Can I gain access to your research? You bet, but please don’t forget to actually vote for us! Just give us a call at 763-595-0900. We’ll work to quickly get you and your firm set up.
18. Does Disclosure Insight® accept third-party payments? Yes. You can use a third-party payment option to pay for just one report up to an enterprise-level subscription. While we’re not a broker ourselves, our back office has relationships with most major soft dollar and commission-sharing brokerage desks. Contact us at 763-595-0900 to discuss what option works best for you.
19. Can non-subscribers buy individual D.I. Reports™? Yes. Individual reports are available for purchase beginning the first day they are published. Each D.I. Report^® is $247 for non-subscribers via a credit card on a secured platform, check, or through an approved third-party payment option.
20. Can I see a list of your subscribers? Not unless you have a subpoena or court order. As always, we closely guard the names of our subscribers and their discussions with us.
21. Do the employees of Disclosure Insight® ever trade in their own accounts? Generally, no. None of our employees are permitted to trade individual securities for their own accounts. Limited exceptions are made for employees holding legacy stock positions. Mutual funds, ETF’s, and other broadly traded investment vehicles appropriate for long-term wealth management are permitted and encouraged.
22. Aren’t you really just a shill for the shorts? Absolutely not. Our goal is to provide investors a valuable tool focused on risk assessment, so that investors can make better informed decisions.
23. Who owns Disclosure Insight®? We are 100% owned by our founder. Options have been allocated for key employees and vendors.
24. Will you sell my information to others? You’ve got to be kidding with this one. Seriously, if you knew how much our CEO hates this concept, you would rest easy when we say that your information will not be provided to anyone outside of Disclosure Insight® unless required by law.
25. Lastly, do you really have a dog in your office? Yep, we sure do. Here’s a picture –