Financial Black Belt™ Business Program

Welcome to the most innovative financial wellness program available. The Financial Black Belt’s Financial Self-Defense Training Series is designed to help individuals, college students, and employees take control of their financial futures. Whether you are getting ready to graduate college or you have been in the work force since high school, you can earn your 1st Degree Financial Black Belt with the proven strategies outlined in this training.

In Hap Ki Do – Hap is defined as harmony – Ki is defined as energy and Do is defined as the way. This is why the Financial Self-Defense Training uses the belt structure of Hap Ki Do to teach the financial milestones. Because this training must be harmonized with the life-style of the person. It must be the energy behind every financial decision. And it must be the way of life for those who seek to secure their financial futures.

Whether you are a college financial training coordinator who is looking for a creative financial wellness program to offer to student getting ready to graduate or an employer who is looking to offer an innovative financial wellness program to its employees, the Financial Self-Defense Training Series offers a unique experience for all levels. The Financial Black Belt’s™ Financial Self-Defense Training™ Series is an actions-based financial strategy program that harmonizes the intellectual and physical energy of financial management into a way of life for those who achieve the rank of Black Belt

Synopsis: The Financial Black Belt™ program is a Personal Financial Self-Defense™ strategy that applies the structure and discipline of martial arts training and the financial literacy and behaviors needed for one to become a millionaire. Financial Self-Defense training™ gives employees a life-long strategy for building wealth, gives employers extra value for their HR dollars, and improves the employee – employer’s ability to give back to the community and help others. Financial Self-Defense Training™ provides basic and advanced financial training, teaches employees how to prioritize life to build wealth, and is a proven process that results in positive financial behaviors.

Delivery: Training is delivered in person by a 2^nd Degree Financial Black Belt™ through a series of presentations based upon belt levels and financial milestones. There are thirteen modules providing instruction on basic, intermediate, and advanced financial concepts. Seven modules are directed at Beginning belts and six modules are directed at Intermediate and Advanced belts.

ROI: Jim Rohm used to say “Everyone should set a goal to become a millionaire; not to have a million dollars, but because of what it makes of you in the process of becoming a millionaire.” This course teaches individuals character, discipline, and strategic thinking using a cross pollination process of martial arts and financial acumen. The employee will gain competency in financial matters, have a broader understanding about economic drivers, have a written strategic goal for his or her life, make better financial decisions and be better positioned to build wealth and give back. The responsibility we have as a society is to ensure the success of the next generation in becoming productive members of the world in which we live. This program is a great place to start that process.

How it differs:

$      Sets a life-long strategic goal to achieve the rank of 6^th Degree Financial Black Belt™ 

$      Uses concept association to enhance financial acumen, receptive language skills and positive financial behaviors

$      Builds financial discipline, effective financial decision making, and productive financial problem solving abilities

$      Is strategically developed to help an individual achieve the financial level of millionaire by age thirty-five

$      Is a life-long strategic plan for achieving financial freedom that once implemented, will help individuals work through some of life’s most difficult financial challenges

Program Development: The Financial Black Belt™ program was developed over many years using strategic planning skills and life-tested financial literacy. The program was conceptualized in 2009 and each belt rank has been tested and proven by the developer. The developer is a 2nd Degree Financial Black Belt™ (Financial Assets Millionaire), financial mentor, and a Strategic Financial Life Coach who has used these strategies to secure financial independence.

Call to action: If you are ready to offer your employees greater opportunity for success, contact me to schedule a personal meeting to discover how the Financial Black Belt™ program can change the trajectory of your employees’ future. Email me at financialblackbelt@gmail.com. 

Cost Structure: The seminars are divided between Beginning belts and Intermediate/Advanced belts based on belt levels and financial strategies. Employees will learn the No Belt thru Purple Belts (7 sections) as a prerequisite for learning Brown Belt thru 6th Degree Black Belt (6 sections). Each class will start with a test on the previous belt level followed by instruction for the next belt level. Rates include unlimited number of employees per session. 

The Junior Financial Modules (No Belt thru Purple Belt) costs are calculated for 14 hours of training based on location.

The Senior Financial Modules (Brown thru 6th Degree Black Belt) costs are calculated for 12 hours of training based on location.

If both programs (Junior and Senior) are purchased as a package, the total price will be reduced by 15%.

If you are ready to get serious about becoming financially independent, schedule the Financial Self-Defense Training today. Write The Financial Black Belt at financialblackbelt@gmail.com to schedule an in-person preview of the entire program.

Arbitrage : Finding Value In The Sprint – T-Mobile Merger

Sprint – T-Mobile Merger

Is it time to jump on the Arbitrage train with the Sprint – T-Mobile merger? With the current market prices (as of 11-28-18 pre-market) sitting at $6.18 and $67.49 respectively, there is an 11.39% upside in this deal (12% when fractional shares are paid out in cash).

There is always risk associated with mergers and acquisition, but if an investor waits until there is more clarity and certainty, the gains made can become a good source of passive income. The recent mergers between Rockwell Collins (COL) and United Technologies (UTX) have proven that getting in at the right moment can be very lucrative for an investor.

Due to the beat-down of stocks in October, COL had dropped to $131 and change on a $140 per share merger valuation. An investor buying at the $131 price gained over $8 per share recently when the final approval was received from China and the COL shot up to over $141 per share, which was higher than the merger valuation.

Another similar merger is taking place right now with SCANA Corp. (SCG) and Dominion (D) where, recognizing the depressed stock price of SCG in October, an investor could have purchased shares of SCG for $36 and change on a $56 per share merger valuation.

Now one must ask the question “Is the T-Mobile / Sprint merger worth entering?” The terms of the all-stock transaction state that for every one share of Sprint held, the investor will receive 0.1026 of a share of T-Mobile. So long as the stock price of T-Mobile remains 10x the stock price of Sprint, there will be a 10% upside to the buy. If that gap widens, the arbitrage realized could be greater than 12%.

If Albert Einstein is correct that “Compound interest is the eighth wonder of the world,” then arbitrage is the ninth! ...and you can quote me on that. In a recent post I wrote about the options presented to investors concerning this merger (https://www.linkedin.com/pulse/t-mobile-sprint-merger-unlock-value-ken-rupert/). Now that this merger is beginning to show some steam, I think it is time for investors to consider the upside potential.

With the T-Mobile / Sprint merger could close faster than expected. Although the target for closing the deal is Q2-19, it is possible that the timeline for closure could be accelerated to Q1-19. The last hurdle are depositions with the DOJ, which are expected to be complete in mid-December. With that timeline, it is more likely to close in Q2 but if final approvals are received quicker, Q1 might be realistic.

Before the deal can be finalized, it will have to be approved by the Justice Department, which will review it for antitrust violations. Mark my words, on the day that the DOJ grants approval, there will be a seismic shift in stock prices. In the case of COL-UTX merger, when the final approval was received from China, COL shot up to the merger valuation and more. Announcements of final approval are equivalent to an adrenaline shot for a tired body.

So when should an Investor make the move to purchase Sprint? Again, so long as the stock price of T-Mobile remains 10x that of Sprint, there is money to be made. If that spread shrinks, the opportunity will begin dry up. Of course, once an investor purchases Sprint shares, the spread must remain for the arbitrage to remain intact.

It is important to understand that there are three ways for the spread to shrink. The first being that the share price of Sprint increase and the share price of T-Mobile stagnates. The second is the share price of T-Mobile decreases and the share price of Sprint stagnates. The worst case scenario is that Sprint’s share price increases and T-Mobile’s share price decreases (unless at that time, an investor is holding Sprint stock, which can be sold on the spread shrinkage given the third scenario).

An arbitrageur is trying to capture the spread between the trading price of a stock and the true value of that stock. In the case of mergers and acquisitions, that spread is between the trading price and the merger valuation (the price being paid for the Acquiree).

I spend countless hours studying mergers and acquisitions, analyzing the spreads, monitoring the approval process, and calculating the timing. Taking advantage of the arbitrage created by these corporate actions is as much of an art as it is technical analysis. However, I have a few rules I follow as new mergers and acquisitions are announced:

First, buying on rumors creates too much risk: You have to keep in mind that mergers and acquisitions can take up to 24 months to close (something I will touch on later). There are so many adverse developments that can shut down M&A activity. A geo-political event, foreign regulators, or an economic down-turn. I never buy on the rumor.

Next, give the merger or acquisition time to settle out after it has been announced. Typically, when a merger is announced, the market reacts in one or two ways. If the market likes the merger, the acquiree’s stock will spike to near the merger valuation. If the market does not like the merger, the acquirer’s stock will drop precipitously. I never buy into a merger or acquisition on the announcement.

Finally, wait for an appropriate opportunity to open a position in the Acquiree. As the merger or acquisition goes through the process of attaining approvals from the boards, shareholders, and the government, the market continues to respond to economic news, geo-political events, and other market drivers.

That is what happened in October and the beginning of November. That is why COL dropped to $131 and change leaving a double-digit arbitrage play. The same thing has happened to the SCG – D acquisition. And now it looks like the Sprint and T-Mobile merger is in the same position. Investors have undervalued Sprint and as T-Mobile’s stock price continues to inch up, the arbitrage play is growing.

When a merger or acquisition is announced, it usually requires multiple approvals and at least 18 to 24 months of transition before the deal closes. The early days of a merger or acquisition can make a stock bounce, but eventually it settles back down and thus begins the clock on arbitrage. I have a time target in which I will open a position in a merger or acquisition.

Is the time right for an investor to open a position in Sprint? I do not know about you, but for this investor, based on the rules, the Sprint / T-Mobile merger is near the sweet spot.

Arbitrage. I don’t know… I just like saying that word.