Free stock investment reports on individual stocks and other topics related to business valuation, financial regulatory reform, and
Hidden Gems and Red Flags. Learn more about financial investment strategies based on
economic earnings and
discounted cash flow analyses
that leverage
critical data we unearth from Financial Footnotes.
Learn how our
patented Research Platform drives the
success of our newsletters for the Most Attractive and Most Dangerous Stocks.
Aug 20, 2010
Sandridge Energy Inc (SD)
Free Company Valuation Report - August 2010
Aug 5, 2010
AutoNation Inc. (AN)
FREE Company Valuation Report - August 2010 Most DANGEROUS Large Cap Stock
Aug 5, 2010
Finisar Corp (FNSR)
FREE Company Valuation Report - August 2010 Most DANGEROUS Small Cap Stock
Aug 5, 2010
Icon Plc Ads (ICLR)
FREE Company Valuation Report - August 2010 Most ATTRACTIVE Small Cap Stock
Aug 5, 2010
Global Payments Inc. (GPN)
FREE Company Valuation Report - August 2010 Most ATTRACTIVE Large Cap Stock
Jul 29, 2010
Decoding Wall Street Propaganda
Learn How To Find The True Value of Companies
- Wall Street firms are in the business of selling stock not good research.
- Good research is in conflict with their investment banking business, which makes all the profits of the bank while research departments are pure cost centers.
- The depth and breadth of New Constructs’ research represents a Paradigm Shift in equity research.
- Our patented research system enables us to read, analyze and model the impact of data from the Financial Footnotes for 3000+ companies.
- No other research firm offers investors as complete or rigorous research on the profitability and valuation of companies.
Jul 26, 2010
Proof Is In Performance Thru 2Q10
Most Attractive (Long) & Most Dangerous (Short) Stocks
- The Most Attractive and Most Dangerous Stocks reports offer multiple strategies to outperform in good and bad markets.
- The Long/Short strategy in Figure 1 earns 81.7% from April 2006 thru June 2010, beating the Risk-Free Rate by 71.4%.
- Figure 1’s Long/Short strategy also outperformed the S&P 500 (down 21.1%) by 102.8% and the Russell 2000 (down 20.8%) by 102.5% from April 2006 thru June 2010.
- Barron’s and Institutional Investor Magazine highlighted our stock-picking as best amongst all research firms.
Jul 7, 2010
Xilinx Inc (XLNX)
FREE Company Valuation Report - July 2010 Most ATTRACTIVE Large Cap Stock
Jul 7, 2010
USEC Inc (USU)
FREE Company Valuation Report - July 2010 Most DANGEROUS Small Cap Stock
Jul 7, 2010
Myriad Genetics Inc (MYGN)
FREE Company Valuation Report - July 2010 Most ATTRACTIVE Small Cap Stock
Jul 7, 2010
Akamai Technologies Inc (AKAM)
FREE Company Valuation Report - July 2010 Most DANGEROUS Large Cap Stock
Jun 17, 2010
Tuesday Morning (TUES) Dangerous Rating
Report referenced in the recent Dow Jones article
- Here's the report with the data mentioned in the recent Dow Jones article.
- See Appendices 2, 3, 5 and 6 to see how TUES' off-balance sheet debt affects the profitability of the business.
Jun 4, 2010
Gap Inc (GPS)
FREE Company Valuation Report - June 2010 Most ATTRACTIVE Large Cap Stock
Jun 4, 2010
Integrated Device Technology (IDTI)
FREE Company Valuation Report - June 2010 Most DANGEROUS Small Cap Stock
Jun 4, 2010
Tessera Technologies Inc. (TSRA)
FREE Company Valuation Report - June 2010 Most ATTRACTIVE Small Cap Stock
Jun 4, 2010
Dick's Sporting Good Inc (DKS)
FREE Company Valuation Report - June 2010 Most DANGEROUS Large Cap Stock
Jun 2, 2010
Most Dangerous Stocks for June 2010
20 Large/Mid Cap and 20 Small Cap Stocks
- 11 new stocks make our June lists.
- FREE Company Valuation Reports for 2 of the new stocks are in the Free Archive on our website.
- The Dangerous Stocks (-9.8%) fell more than the S&P 500 (-7.2%) and outperformed as a short portfolio last month.
- Most Dangerous Stocks have misleading earnings, which means reported earnings are rising while true economic earnings are declining.
- Barron's recently highlighted our stock-picking as amongst the best of all Wall Street firms.
Jun 2, 2010
Most Attractive Stocks for June 2010
20 Large/Mid Cap and 20 Small Cap Stocks
- 9 new stocks make our June lists.
- FREE Company Valuation Reports for 2 of the new stocks are in the Free Archive on our website.
- The Most Attractive Stocks portfolio (-1.6%) outperformed the S&P 500 (-7.2%) last month.
- Most Attractive Stocks have high and rising returns on capital (ROIC) and low market expectations for future profits.
- Barron's recently highlighted our stock-picking as amongst the best of all Wall Street firms.
May 25, 2010
Sirius XM Radio (SIRI) - Dangerous Rating
as reported in the TheStreet.com article:
- This free report contains full details on how reported earnings differ from economic earnings and cash flow.
- All details on our DCF analysis and valuation model are in the report.
- All of our reports provide the same details on each of the 3000 companies we cover.
May 14, 2010
Letter to Senator Corker - Requesting A Meeting
First letter to Senator Corker
May 13, 2010
Follow-Up Letter to Senator Corker
Second letter to Senator Corker to follow up on our meeting
May 13, 2010
Presentation to Senator Corker, the SEC, FDIC, COP and PCAOB
Details on how New Constructs helps restore integrity of the markets
May 6, 2010
Lubrizol Corp (LZ)
FREE Company Valuation Report – May 2010 Most ATTRACTIVE Large Cap Stock
May 6, 2010
Stage Stores Inc (SSI)
FREE Company Valuation Report - May 2010 Most DANGEROUS Small Cap Stock
May 6, 2010
NYSE Euronext Inc (NYX)
FREE Company Valuation Report - May 2010 Most DANGEROUS Large Cap Stock
May 6, 2010
USA Mobility Inc (USMO)
FREE Company Valuation Report - May 2010 Most ATTRACTIVE Small Cap Stock
May 5, 2010
Proof Is In Performance Thru 1Q10
Most Attractive (Long) & Most Dangerous (Short) Stocks
- The Most Attractive and Most Dangerous Stocks reports offer multiple strategies to outperform in good and bad markets.
- The Long/Short strategy in Figure 1 earns 57.1% from April 2006 thru Mar 2010, beating the Risk-Free Rate by 46.9%.
- Figure 1’s Long/Short strategy also outperformed the S&P 500 (down 8.3%) by 65.4% and the Russell 2000 (down 7.7%) by 64.8% from April 2006 thru March 2010.
- Barron’s and Institutional Investor Magazine highlighted our stock-picking as best amongst all research firms.
May 4, 2010
Most Attractive Stocks for May 2010
20 Large/Mid Cap and 20 Small Cap Stocks
- 5 new stocks make our May lists.
- FREE Company Valuation Reports for 2 of the new stocks are in the Free Archive on our website.
- The Most Attractive Stocks portfolio (+1.2%) outperformed the S&P 500 (-0.2%) last month.
- Most Attractive Stocks have high and rising returns on capital (ROIC) and low market expectations for future profits.
- Barron's recently highlighted our stock-picking as amongst the best of all Wall Street firms.
May 4, 2010
Most Dangerous Stocks for May 2010
20 Large/Mid Cap and 20 Small Cap Stocks
- 4 new stocks make our May lists.
- FREE Company Valuation Reports for 2 of the new stocks are in the Free Archive on our website.
- The Most Dangerous Stocks portfolio (+0.6%) rose while the S&P 500 fell (-0.2%) and underperformed as a short portfolio last month.
- Most Dangerous Stocks have misleading earnings, which means reported earnings are rising while true economic earnings are declining.
- Barron's recently highlighted our stock-picking as amongst the best of all Wall Street firms.
Apr 22, 2010
New York Times (NYT)
FREE Report with Data References in Recent BusinessWeek article
- Details behind the BusinessWeek article referencing our analysis of New York Time (NYT).
- See details on the $1 billion in write-offs referenced in the article.
- See details on how the write-offs affect profitability even though they are not reflected accurately in reported earnings. See Appendices 2,3,4 and 5.
Apr 14, 2010
Corporate Disclosure Trangressions
Report Delivered To Senate Banking Committee in Oct 2009
- The purpose of the report is to show Congress all the ways that companies obfuscate their profitability and manage earnings
- These Disclosure Transgressions will remain largely undeterred until investors hold companies accountable.
- Financial Regulatory reform should focus first on ensuring investors are able to access accurate information in the capital markets before adding more regulatory bureaucracy.
- We believe markets can self-regulate very effectively when investors are adequately informed.
Apr 8, 2010
LEAP WIRELESS INTL INC (LEAP)
FREE Company Valuation Report - for MarketWatch Stupid Investment of the Week
- See Appendices 2, 3 and 5 for details on how LEAP's off-balance sheet debt affects profitability.
Apr 6, 2010
Most Dangerous Stocks for April 2010
20 Large/Mid Cap and 20 Small Cap Stocks
- 25 new stocks make our April lists.
- FREE Company Valuation Reports for 2 of the new stocks are in the Free Archive on our website.
- The Dangerous Stocks portfolio (+4.3%) outperformed the S&P 500 (+5.3%) as a short portfolio last month.
- Most Dangerous Stocks have misleading earnings, which means reported earnings are rising while true economic earnings are declining.
- Barron's recently highlighted our stock-picking as amongst the best of all Wall Street firms.
Apr 6, 2010
Lexmark Intl Inc (LXK)
FREE Company Valuation Report - April 2010 Most ATTRACTIVE Large Cap Stock
Apr 6, 2010
RTI Bioligics (RTIX)
FREE Company Valuation Report - April 2010 Most DANGEROUS Small Cap Stock
Apr 6, 2010
IMPAC Mortgage Inc (IMPM)
FREE Company Valuation Report - April 2010 Most ATTRACTIVE Small Cap Stock
Apr 6, 2010
Most Attractive Stocks for April 2010
20 Large/Mid Cap and 20 Small Cap Stocks
- 20 new stocks make our April lists.
- FREE Company Valuation Reports for 2 of the new stocks are in the Free Archive on our website.
- The Most Attractive Stocks portfolio (+4.8%) underperformed the S&P 500 (+5.3%) last month.
- Most Attractive Stocks have high and rising returns on capital (ROIC) and low market expectations for future profits.
- Barron's recently highlighted our stock-picking as amongst the best of all Wall Street firms.
Apr 6, 2010
Massey Energy Co (MEE)
FREE Company Valuation Report - April 2010 Most DANGEROUS Large Cap Stock
Mar 2, 2010
Most Attractive Stocks for March 2010
20 Large/Mid Cap and 20 Small Cap Stocks
- 15 stocks from last month's report rose more than the S&P
500 (+1.4%). 21 stocks had positive gains.
- 19 new stocks make our March lists.
- The Most Attractive Stocks have high and rising returns on capital (ROIC) and low expectations for future profits.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Mar 2, 2010
Most Dangerous Stocks for March 2010
20 Large/Mid Cap and 20 Small Cap Stocks
- 19 stocks from last month's report underperformed the S&P500 (+1.4%). 17 stocks had negative returns.
- 21 new stocks make our March lists.
- The Most Dangerous Stocks have Misleading Earnings, which means reported earnings are rising while economic earnings and ROIC are declining.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Feb 2, 2010
Most Attractive Stocks for February 2010
20 Large/Mid Cap and 20 Small Cap Stocks
- 26 stocks from last month's report rose more than the S&P 500 (-5.2%). 11 stocks had positive gains.
- 8 new stocks make our February lists.
- Most Attractive Stocks have high and rising returns on capital (ROIC) and low expectations for future profits.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Feb 2, 2010
Most Dangerous Stocks for February 2010
20 Large/Mid Cap and 20 Small Cap Stocks
- 19 stocks from last month's report underperformed the S&P 500 (-5.2%). 30 stocks had negative returns.
- 6 new stocks make our February lists.
- Most Dangerous Stocks have misleading earnings, which means reported earnings are rising while economic earnings and ROIC are declining.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Jan 27, 2010
Proof Is In Performance Thru 4Q09
Most Attractive (Long) & Most Dangerous (Short) Stocks
- The Most Attractive and Most Dangerous Stocks reports offer multiple strategies to outperform in good and bad markets.
- The Long/Short strategy in Figure 1 earns 61.1% from April 2006 thru Dec 2009, beating the Risk-Free Rate by 50.9%.
- Figure 1’s Long/Short strategy also outperformed the S&P 500 (down 12.5%) by 73.6% and the Russell 2000 (down 15.3%) by 76.4% from April 2006 thru December 2009.
- Barron’s and Institutional Investor Magazine highlighted our stock-picking as best amongst all research firms.
- Detailed explanations of our Most Attractive and Most Dangerous Stock selection methodologies are included.
Jan 5, 2010
Most Dangerous Stocks for January 2010
20 Large/Mid Cap and 20 Small Cap Stocks
- 8 stocks from last month's report underperformed the S&P
500 (+0.6%). 8 stocks had negative returns.
- 8 new stocks make our January lists.
- Note: we modified our FCF Yield Rating. It is based on a
single year instead of the 2-year average.
- The Most Dangerous Stocks have Misleading Earnings, which
means reported earnings are rising while economic earnings
and ROIC are declining.
- Institutional Investor Magazine highlighted our stock-picking
ability as #1 amongst all research firms.
Jan 5, 2010
Most Attractive Stocks for January 2010
20 Large/Mid Cap and 20 Small Cap Stocks
- 29 stocks from last month's report rose more than the S&P
500 (+0.6%). 29 stocks had positive gains.
- 14 new stocks make our January lists.
- Note: we modified our FCF Yield Rating. It is based on a
single year instead of the 2-year average.
- The Most Attractive Stocks have high and rising returns on
capital (ROIC) and low expectations for future profits.
- Institutional Investor Magazine highlighted our stock-picking
ability as #1 amongst all research firms.
Dec 9, 2009
Extra Space Storage Inc (EXR)
On our December 2009 Most DANGEROUS Stocks list - Small Cap
Dec 9, 2009
Dish Network A (DISH)
On our December 2009 Most ATTRACTIVE Stocks list - Large Cap
Dec 9, 2009
Red Hat Inc (RHT)
On our December 2009 Most DANGEROUS Stocks list - Large Cap
Dec 9, 2009
Wells Fargo & Co. (WFC)
Neutral Rating
Dec 9, 2009
W&T Offshore Inc (WTI)
On our December 2009 Most ATTRACTIVE Stocks list - Small Cap
Dec 2, 2009
Most Dangerous Stocks for December 2009
20 Large/Mid Cap and 20 Small Cap Stocks
- New lower price ($50) for our Most Dangerous report.
- 29 stocks from last month's report underperformed the S&P
500 (+4.8%). 19 stocks had negative returns.
- 12 new stocks make our December lists.
- Most Dangerous Stocks have misleading earnings, which
means reported earnings are rising while economic earnings
and ROIC are declining.
- Institutional Investor Magazine highlighted our stock-picking
ability as #1 amongst all research firms.
Dec 2, 2009
Most Attractive Stocks for December 2009
20 Large/Mid Cap and 20 Small Cap Stocks
- New lower price ($50) for our Most Attractive report.
- 19 stocks from last month's report rose more than the S&P500 (+4.8%). 28 stocks had positive gains.
- 12 new stocks make our December lists.
- Most Attractive Stocks have high and rising returns on capital(ROIC) and low expectations for future profits.
- Institutional Investor Magazine highlighted our stock-picking
ability as #1 amongst all research firms.
Nov 4, 2009
Most Attractive Stocks for November 2009
20 Large/Mid Cap and 20 Small Cap Stocks
- New lower price ($50) for our Most Attractive report.
- 13 stocks from last month's report rose more than the S&P500 (+1.3%). 13 stocks had positive gains.
- 7 new stocks make our November lists.
- The Most Attractive Stocks have high and rising returns on capital (ROIC) and low expectations for future profits.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Nov 4, 2009
Most Dangerous Stocks for November 2009
20 Large/Mid Cap and 20 Small Cap Stocks
- New lower price ($50) for our Most Dangerous report.
- 26 stocks from last month's report underperformed the S&P500 (+1.3%). 20 stocks had negative returns.
- 9 new stocks make our November lists.
- The Most Dangerous Stocks have Misleading Earnings, which means reported earnings are rising while economic earnings and ROIC are declining.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Oct 22, 2009
Proof Is In Performance Thru 3Q09
Most Attractive (Long) & Most Dangerous (Short) Stocks
- The Most Attractive and Most Dangerous Stocks reports offer multiple strategies to outperform in good and bad markets.
- Both our Long and our Short strategies contribute to the excess returns. These strategies also work for both Large and Small Cap stocks. See Appendix 4 for details.
- The Long/Short strategy in Figure 1 earns 63.2% from April 2006 thru Sept 2009, beating the Risk-Free Rate by 53.0%.
- Figure 1's Long/Short strategy also outperformed the S&P 500 (down 20.5%) by 83.7% and the Russell 3000 (down 22.8%) by 86.0% from April 2006 thru September 2009.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
- Detailed explanations of our Most Attractive and Most Dangerous Stock selection methodologies are included.
Oct 2, 2009
Most Attractive Stocks for October 2009
20 Large/Mid Cap and 20 Small Cap Stocks
- 17 stocks from last month's report rose more than the S&P
500 (+5.9%). 29 stocks had positive gains.
- 9 new stocks make our October lists.
- The Most Attractive Stocks have high and rising returns on capital (ROIC) and low expectations for future profits.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Oct 2, 2009
Most Dangerous Stocks for October 2009
20 Large/Mid Cap and 20 Small Cap Stocks
- 20 stocks from last month's report underperformed the S&P500 (+5.9%). 11 stocks had negative returns.
- 6 new stocks make our October lists.
- The Most Dangerous Stocks have Misleading Earnings, which means reported earnings are rising while economic earnings and ROIC are declining.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Sep 2, 2009
Most Dangerous Stocks for September 2009
20 Large/Mid Cap and 20 Small Cap Stocks
- 20 stocks from last month's report underperformed the S&P 500 (+1.5%). 18 stocks had negative returns.
- 7 new stocks make our September lists.
- Most Dangerous Stocks have misleading earnings, which means reported earnings are rising while economic earnings and ROIC are declining.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Sep 2, 2009
Most Attractive Stocks for September 2009
20 Large/Mid Cap and 20 Small Cap Stocks
- 16 stocks from last month's report rose more than the S&P
500 (+1.5%). 21 stocks had positive gains.
- 4 new stocks make our September lists.
- Most Attractive Stocks have high and rising returns on capital (ROIC) and low expectations for future profits.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Aug 5, 2009
Most Attractive Stocks for August 2009
20 Large/Mid Cap and 20 Small Cap Stocks
- 23 stocks from last month's report rose more than the S&P 500 (+8.6%). 36 stocks had positive gains.
- 7 new stocks make our August lists.
- The Most Attractive Stocks have high and rising returns on capital (ROIC) and low expectations for future profits.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Aug 5, 2009
Most Dangerous Stocks for August 2009
20 Large/Mid Cap and 20 Small Cap Stocks
- 30 stocks from last month’s report underperformed the S&P 500 (+8.6%). 6 stocks had negative returns.
- 7 new stocks make our August lists.
- The Most Dangerous Stocks have Misleading Earnings, which means reported earnings are rising while economic earnings and ROIC are declining.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Jul 21, 2009
Proof Is In Performance Thru 2Q09
Most Attractive (Long) & Most Dangerous (Short) Stocks
- The Most Attractive and Most Dangerous Stocks reports offer multiple strategies to outperform in good and bad markets.
- Both our Long and our Short strategies contribute to the excess returns. These strategies also work for both Large and Small Cap stocks. See Appendix 4 for details.
- The Long/Short strategy in Figure 1 earns 51.7% from April 2006 thru June 2009, beating the Risk-Free Rate by 41.6%.
- Figure 1's Long/Short strategy also outperformed the S&P 500 (down 28.7%) by 80.4% and the Russell 3000 (down 31.6%) by 83.3% from April 2006 thru June 2009.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
- Detailed explanations of our Most Attractive and Most Dangerous Stock selection methodologies are included.
Jul 2, 2009
Most Dangerous Stocks for July 2009
20 Large/Mid Cap and 20 Small Cap Stocks
- 16 stocks from last month's report underperformed the S&P 500 (-2.7%). 20 stocks had negative returns.
- 5 new stocks make our July lists.
- Most Dangerous Stocks have misleading earnings, which means reported earnings are rising while economic earnings and ROIC are declining.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Jul 2, 2009
Most Attractive Stocks for July 2009
20 Large/Mid Cap and 20 Small Cap Stocks
- 21 stocks from last month's report rose more than the S&P 500 (-2.7%). 17 stocks had positive gains.
- 6 new stocks make our July lists.
- Most Attractive Stocks have high and rising returns on capital (ROIC) and low expectations for future profits.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Jun 3, 2009
Most Attractive Stocks for June 2009
20 Large/Mid Cap and 20 Small Cap Stocks
- 21 stocks from last month's report rose more than the S&P 500 (+4.3%). 27 stocks had positive gains.
- 3 new stocks make our June lists.
- Most Attractive Stocks have high and rising returns on capital (ROIC) and low expectations for future profits.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Jun 3, 2009
Most Dangerous Stocks for June 2009
20 Large/Mid Cap and 20 Small Cap Stocks
- 25 stocks from last month's report underperformed the S&P 500 (+4.3%). 16 stocks had negative returns.
- 7 new stocks make our June lists.
- The Most Dangerous Stocks have Misleading Earnings, which means reported earnings are rising while economic earnings and ROIC are declining.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
May 7, 2009
Proof Is In Performance Thru 1Q09
Most Attractive (Long) & Most Dangerous (Short) Stocks
- The Most Attractive and Most Dangerous Stocks reports offer multiple strategies to outperform in good and bad markets.
- Both our Long and our Short strategies contribute to the excess returns. These strategies also work for both Large and Small Cap stocks. See Appendix 4 for details.
- The Long/Short strategy in Figure 1 earns 43.5% from April 2006 thru March 2009, beating the Risk-Free Rate by 32.4%.
- Figure 1's Long/Short strategy has also outperformed the relevant market index by approx. 83.7% in a challenging period despite being dollar neutral.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
- Detailed explanations of our Most Attractive and Most Dangerous Stock selection methodologies are included.
May 6, 2009
Most Dangerous Stocks for May 2009
20 Large/Mid Cap and 20 Small Cap Stocks
- 23 stocks from last month's report underperformed the S&P500 (+11.9%). 12 stocks had negative returns.
- 7 new stocks make our May lists.
- The Most Dangerous Stocks have Misleading Earnings, which means reported earnings are rising while economic earnings and ROIC are declining.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
May 6, 2009
Most Attractive Stocks for May 2009
20 Large/Mid Cap and 20 Small Cap Stocks
- 25 stocks from last month's report rose more than the S&P
500 (+11.9%). 36 stocks had positive gains.
- 10 new stocks make our May lists.
- The Most Attractive Stocks have high and rising returns on
capital (ROIC) and low expectations for future profits.
- Institutional Investor Magazine highlighted our stock-picking
ability as #1 amongst all research firms.
Apr 2, 2009
Most Dangerous Stocks for April 2009
20 Large/Mid Cap and 20 Small Cap Stocks
- 17 stocks from last month's report underperformed the S&P
500 (+14.6%). 5 stocks had negative returns.
- 28 new stocks make our April lists.
- The Most Dangerous Stocks have Misleading Earnings, which means reported earnings are rising while economic earnings and ROIC are declining.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Apr 2, 2009
Most Attractive Stocks for April 2009
20 Large/Mid Cap and 20 Small Cap Stocks
- 21 stocks from last month's report rose more than the S&P500 (+14.6%). 38 stocks had positive gains.
- 17 new stocks make our April lists.
- The Most Attractive Stocks have high and rising returns on capital (ROIC) and low expectations for future profits.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Mar 3, 2009
Most Dangerous Stocks for March 2009
20 Large/Mid Cap and 20 Small Cap Stocks
- 20 stocks from last month's report underperformed the S&P 500 (-16.4%). 33 stocks had negative returns.
- 24 new stocks make our March lists.
- Most Dangerous Stocks have misleading earnings, which means reported earnings are rising while economic earnings and ROIC are declining.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Mar 3, 2009
Most Attractive Stocks for March 2009
20 Large/Mid Cap and 20 Small Cap Stocks
- 16 stocks from last month's report rose more than the S&P 500 (-16.4%). 6 stocks had positive gains.
- 28 new stocks make our March lists.
- Most Attractive Stocks have high and rising returns on capital (ROIC) and low expectations for future profits.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Feb 3, 2009
Most Dangerous Stocks for February 2009
20 Large/Mid Cap and 20 Small Cap Stocks
- 17 stocks from last month's report underperformed the S&P500 (-9.0%). 28 stocks had negative returns.
- 6 new stocks make our February lists.
- The Most Dangerous Stocks have Misleading Earnings, which means reported earnings are rising while economic earnings and ROIC are declining.
- Figures 6 and 7 show February's 40 Most Dangerous Stocks.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Feb 3, 2009
Most Attractive Stocks for February 2009
20 Large/Mid Cap and 20 Small Cap Stocks
- 22 stocks from last month's report rose more than the S&P500 (-9.0%). 8 stocks had positive gains.
- 7 new stocks make our February lists.
- The Most Attractive Stocks have high and rising returns on capital (ROIC) and low expectations for future profits.
- Figures 6 and 7 show February's 40 Most Attractive Stocks. Figure 5 shows the performance of January's stocks.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Jan 15, 2009
Proof Is In Performance Thru 4Q08
Most Attractive (Long) & Most Dangerous (Short) Stocks
- The Most Attractive and Most Dangerous Stocks reports offer multiple strategies to outperform in good and bad markets.
- Both our Long and our Short strategies contribute to the excess returns. These strategies also work for both Large and Small Cap stocks. See Appendix 4 for details.
- The Long/Short strategy in Figure 1 earns 38.3% from April 2006 thru Dec 2008, beating the Risk-Free Rate by 28.3%.
- Figure 1's Long/Short strategy has also outperformed the relevant market index by approximately 70.3% in a challenging period despite being dollar neutral.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
- Detailed explanations of our Most Attractive and Most Dangerous Stock selection methodologies are included.
Jan 6, 2009
Most Attractive Stocks for January 2009
20 Large/Mid Cap and 20 Small Cap Stocks
- 34 stocks from last month's report rose more than the S&P 500 (+6.5%). 39 stocks had positive gains.
- 9 new stocks make our January lists.
- Most Attractive Stocks have high and rising returns on capital (ROIC) and low expectations for future profits.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Jan 6, 2009
Most Dangerous Stocks for January 2009
20 Large/Mid Cap and 20 Small Cap Stocks
- 18 stocks from last month's report underperformed the S&P 500 (+6.5%). 6 stocks had negative returns.
- 8 new stocks make our January lists.
- Most Dangerous Stocks have misleading earnings, which means reported earnings are rising while economic earnings and ROIC are declining.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Dec 2, 2008
Most Attractive Stocks for December 2008
20 Large/Mid Cap and 20 Small Cap Stocks
- 10 stocks from last month's report rose more than the S&P 500 (-15.5%). 6 stocks had positive gains. See Figure 1 below.
- 10 new stocks make our December lists. See Figure 3 below.
- The Most Attractive Stocks have high and rising returns on capital (ROIC) and low expectations for future profits.
- Figures 6 and 7 show December's 40 Most Attractive Stocks. Figure 5 shows the performance of November's stocks.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Dec 2, 2008
Most Dangerous Stocks for December 2008
20 Large/Mid Cap and 20 Small Cap Stocks
- 26 stocks from last month's report underperformed the S&P 500 (-15.5%). 37 stocks had negative returns. See Figure 1 below.
- 10 new stocks make our December lists. See Figure 3 below.
- The Most Dangerous Stocks have Misleading Earnings, which means reported earnings are rising while economic earnings and ROIC are declining.
- Figures 6 and 7 show December's 40 Most Dangerous Stocks. Figure 5 shows the performance of November's stocks.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Nov 3, 2008
Most Attractive Stocks for November 2008
20 Large/Mid Cap and 20 Small Cap Stocks
- 15 stocks from last month's report rose more than the S&P 500 (-16.6%). 3 stocks had positive gains.
- 16 new stocks make our November lists.
- The Most Attractive Stocks have high and rising returns on capital (ROIC) and low expectations for future profits.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Nov 3, 2008
Most Dangerous Stocks for November 2008
20 Large/Mid Cap and 20 Small Cap Stocks
- 24 stocks from last month's report underperformed the S&P 500 (-16.6%). 36 stocks had negative returns.
- 11 new stocks make our November lists.
- The Most Dangerous Stocks have Misleading Earnings, which means reported earnings are rising while economic earnings and ROIC are declining.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Oct 27, 2008
Proof Is In Performance Thru 3Q08
Most Attractive (Long) & Most Dangerous (Short) Stocks
- The Most Attractive and Most Dangerous Stocks reports offer multiple strategies to outperform in good and bad markets.
- Both our Long and our Short strategies contribute to the excess returns. These strategies also work for both Large and Small Cap stocks. See Appendix 4 for details.
- The Long/Short strategy in Figure 1 earns 27.1% from April 2006 thru Sept 2008, beating the Risk-Free Rate by 17.2%.
- Figure 1's Long/Short strategy has also outperformed the relevant market index by approx. 37.5% in a challenging period despite being dollar neutral.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
- Detailed explanations of our Most Attractive and Most Dangerous Stock selection methodologies are included in report.
Oct 1, 2008
Most Attractive Stocks for October 2008
20 Large/Mid Cap and 20 Small Cap Stocks
- 18 stocks from last month's report rose more than the S&P 500 (-8.6%). 6 stocks had positive gains.
- 9 new stocks make our October lists.
- Most Attractive Stocks have high and rising returns on capital (ROIC) and low expectations for future profits.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Oct 1, 2008
Most Dangerous Stocks for October 2008
20 Large/Mid Cap and 20 Small Cap Stocks
- 19 stocks from last month’s report underperformed the S&P 500 (-8.6%). 28 stocks had negative returns.
- 8 new stocks make our October lists.
- Most Dangerous Stocks have misleading earnings, which means reported earnings are rising while economic earnings and ROIC are declining.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Sep 3, 2008
Most Attractive Stocks for September 2008
20 Large/Mid Cap and 20 Small Cap Stocks
- 27 stocks from last month's report rose more than the S&P 500 (-0.6%). 26 stocks had positive gains.
- 14 new stocks make our September lists.
- The Most Attractive Stocks have high and rising returns on capital (ROIC) and low expectations for future profits.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Sep 3, 2008
Most Dangerous Stocks for September 2008
20 Large/Mid Cap and 20 Small Cap Stocks
- 22 stocks from last month's report underperformed the S&P 500 (-0.6%). 23 stocks had negative returns.
- 17 new stocks make our September lists.
- Most Dangerous Stocks have misleading earnings, which means reported earnings are rising while economic earnings and ROIC are declining.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Aug 28, 2008
Proof Is In Performance Thru 2Q08
Most Attractive (Long) & Most Dangerous (Short) Stocks
- The Most Attractive and Most Dangerous Stocks reports offer multiple strategies to outperform in good and bad markets.
- Both our Long and our Short strategies contribute to the excess returns. These strategies also work for both Large and Small Cap stocks. See Appendix 4 for details.
- The Long/Short strategy in Figure 1 earns 19.2% from April 2006 thru June 2008, beating the Risk-Free Rate by 9.7%.
- Figure 1's Long/Short strategy has also outperformed the relevant market index by approx. 24.8% in a challenging period despite being net dollar neutral.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
- Detailed explanations of our Most Attractive and Most Dangerous Stock selection methodologies are included.
Aug 5, 2008
Most Dangerous Stocks for August 2008
20 Large/Mid Cap and 20 Small Cap Stocks
- 14 stocks from last month's report underperformed the S&P 500 (-1.9%). 17 stocks had negative returns.
- 10 new stocks make our August lists.
- The Most Dangerous Stocks have Misleading Earnings, which means reported earnings are rising while economic earnings and ROIC are declining.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Aug 5, 2008
Most Attractive Stocks for August 2008
20 Large/Mid Cap and 20 Small Cap Stocks
- 26 stocks from last month's report rose more than the S&P 500 (-1.9%). 21 stocks had positive gains.
- 12 new stocks make our August lists.
- The Most Attractive Stocks have high and rising returns on capital (ROIC) and low expectations for future profits.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Jul 8, 2008
Most Dangerous Stocks for July 2008
20 Large/Mid Cap and 20 Small Cap Stocks
- 23 stocks from last month?s report underperformed the S&P 500 (-9.1%). 36 stocks had negative returns.
- 9 new stocks make our July lists.
- The Most Dangerous Stocks have Misleading Earnings, which means reported earnings are rising while economic earnings and ROIC are declining.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Jul 8, 2008
Most Attractive Stocks for July 2008
20 Large/Mid Cap and 20 Small Cap Stocks
- 10 stocks from last month's report rose more than the S&P 500 (-9.1%). 4 stocks had positive gains.
- 6 new stocks make our July lists.
- The Most Attractive Stocks have high and rising returns on capital (ROIC) and low expectations for future profits.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Jun 3, 2008
Most Dangerous Stocks for June 2008
20 Large/Mid Cap and 20 Small Cap Stocks
- 20 stocks from last month's report underperformed the S&P 500 (-2.3%). 26 stocks had negative returns.
- 16 new stocks make our June lists.
- The Most Dangerous Stocks have Misleading Earnings, which means reported earnings are rising while economic earnings and ROIC are declining.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Jun 3, 2008
Most Attractive Stocks for June 2008
20 Large/Mid Cap and 20 Small Cap Stocks
- 26 stocks from last month's report rose more than the S&P 500 (-2.3%). 19 stocks had positive gains.
- 11 new stocks make our June lists.
- The Most Attractive Stocks have high and rising returns on capital (ROIC) and low expectations for future profits.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
May 6, 2008
Most Attractive Stocks for May 2008
20 Large/Mid Cap and 20 Small Cap Stocks
- 15 stocks from last month's report rose more than the S&P 500 (+2.7%). 16 stocks had positive gains.
- 11 new stocks make our May lists.
- The Most Attractive Stocks have high and rising returns on capital (ROIC) and low market expectations for future profits.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
May 6, 2008
Most Dangerous Stocks for May 2008
20 Large/Mid Cap and 20 Small Cap Stocks
- 19 stocks from last month's report underperformed the S&P500 (+2.7%). 17 stocks had negative returns. See Figure 1below.
- 21 new stocks make our May lists.
- The Most Dangerous Stocks have Misleading Earnings, which means reported earnings are rising while economic earnings and ROIC are declining.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Apr 1, 2008
Most Dangerous Stocks for April 2008
20 Large/Mid Cap and 20 Small Cap Stocks
- 19 stocks from last month's report underperformed the S&P 500 (-0.3%). 20 stocks had negative returns.
- 24 new stocks make our April lists.
- The Most Dangerous Stocks have Misleading Earnings, which means reported earnings are rising while economic earnings and ROIC are declining.
Apr 1, 2008
Most Attractive Stocks for April 2008
20 Large/Mid Cap and 20 Small Cap Stocks
- 16 stocks from last month's report rose more than the S&P 500 (-0.3%). 16 stocks had positive gains.
- 14 new stocks make our April lists.
- The Most Attractive Stocks have high and rising returns on capital (ROIC) and low market expectations for future profits.
Mar 11, 2008
Proof Is In Performance Thru December 2007
Most Attractive (Long) & Most Dangerous (Short) Stocks
- The Most Attractive and Most Dangerous Stocks reports offer multiple strategies to outperform in good and bad markets.
- Both our Long and our Short strategies contribute to the excess returns. These strategies also work for both Large and Small Cap stocks. See Appendix 4 for details.
- The Long/Short strategy in Figure 1 earns 17.8% from April,2006 through December, 2007, beating the risk-free rate by 9.3%.
- Figure 1 shows that Long/Short strategy has outperformed the relevant market index by approx (17.7% in a turbulent period).
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
- Detailed explanations of our Most Attractive and Most Dangerous Stock selection methodologies are included.
Mar 4, 2008
Most Dangerous Stocks for March 2008
20 Large/Mid Cap and 20 Small Cap Stocks
- 31 stocks from last month's report underperformed the S&P 500 (-0.4%). 32 stocks had negative returns.
- 23 new stocks make our March lists.
- Most Dangerous Stocks have misleading earnings, which means reported earnings are rising while economic earnings and ROIC are declining.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Mar 4, 2008
Most Attractive Stocks for March 2008
20 Large/Mid Cap and 20 Small Cap Stocks
- 19 stocks from last month's report rose more than the S&P 500 (-0.4%). 19 stocks had positive gains.
- 25 new stocks make our March lists.
- Most Attractive Stocks have high and rising returns on capital (ROIC) and low market expectations for future profits.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Feb 5, 2008
Most Dangerous Stocks for February 2008
20 Large/Mid Cap and 20 Small Cap Stocks
- 15 stocks from last month's report underperformed the S&P500 (-0.7%). 16 stocks had negative returns.
- 4 new stocks make our February lists.
- Most Dangerous Stocks have misleading earnings, which means reported earnings are rising while economic earnings and ROIC are declining.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Feb 5, 2008
Most Attractive Stocks for February 2008
20 Large/Mid Cap and 20 Small Cap Stocks
- 30 stocks from last month's report rose more than the S&P
500 (-0.7%). 27 stocks had positive gains.
- 8 new stocks make our February lists.
- Most Attractive Stocks have high and rising returns on capital
(ROIC) and low market expectations for future profits.
- Institutional Investor Magazine highlighted our stock-picking
ability as #1 amongst all research firms.
Jan 8, 2008
Most Attractive Stocks for January 2008
20 Large/Mid Cap and 20 Small Cap Stocks
- 21 stocks from last month's report rose more than the S&P 500 (-3.2%). 15 stocks had positive gains.
- 9 new stocks make our January lists.
- Most Attractive Stocks have high and rising returns on capital (ROIC) and low expectations for future profits.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Jan 8, 2008
Most Dangerous Stocks for January 2008
20 Large/Mid Cap and 20 Small Cap Stocks
- 16 stocks from last month's report underperformed the S&P 500 (-3.2%). 27 stocks had negative returns.
- 5 new stocks make our January lists.
- Most Dangerous Stocks have misleading earnings, which means reported earnings are rising while economic earnings and ROIC are declining.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Dec 4, 2007
Most Attractive Stocks for December 2007
20 Large/Mid Cap and 20 Small Cap Stocks
- 18 stocks from last month's report out-performed the S&P 500 (-2.0%). 13 stocks had positive gains.
- 4 new stocks make our December lists.
- Most Attractive Stocks have high and rising returns on capital (ROIC) and low expectations for future profits.
- Figures 6 and 7 show December's 40 Most Attractive Stocks. Figure 5 shows the performance of November's stocks.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Dec 4, 2007
Most Dangerous Stocks for December 2007
20 Large/Mid Cap and 20 Small Cap Stocks
- 23 stocks from last month?s report underperformed the S&P 500 (-2.0%). 29 stocks had negative returns.
- 9 new stocks make our December lists.
- Most Dangerous Stocks have misleading earnings, which means reported earnings are rising while economic earnings and ROIC are declining.
- Figures 6 and 7 show December's 40 Most Dangerous Stocks. Figure 5 shows the performance of November's stocks.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Nov 5, 2007
Most Dangerous Stocks for November 2007
20 Large/Mid Cap and 20 Small Cap Stocks
- 20 stocks from last month?s report underperformed the S&P 500 (-2.4%). 23 stocks had negative returns.
- 6 new stocks make our November lists.
- All of our Most Dangerous Stocks have a 'Very Dangerous' rating, the worst score in our Risk/Reward Rating system.
- Very Dangerous Stocks have Misleading Earnings, which means reported earnings are rising while economic earnings and ROIC are declining.
- Figures 6 and 7 show November's 40 Most Dangerous stocks. Figure 5 shows the performance of October's stocks.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Nov 5, 2007
Most Attractive Stocks for November 2007
20 Large/Mid Cap and 20 Small Cap Stocks
- 13 stocks from last month's report rose more than the S&P 500 (-2.4%). 8 stocks had positive gains.
- 12 new stocks make our November lists.
- All of our Most Attractive Stocks have a 'Very Attractive' rating, the best score in our Risk/Reward Rating system.
- Very Attractive stocks have high and rising returns on capital (ROIC) and low expectations for future profits.
- Figures 6 and 7 show November's 40 Most Attractive stocks. Figure 5 shows the performance of October's stocks.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Oct 2, 2007
Most Dangerous Stocks for October 2007
20 Large/Mid Cap and 20 Small Cap Stocks
- 21 stocks from last months report underperformed the S&P 500 (+5.1%). 15 stocks had negative returns. See Figure 1.
- 8 new stocks make our October lists. See Figure 3.
- All of our Most Dangerous Stocks have a 'Very Dangerous' rating, the worst score in our Risk/Reward Rating system.
- Very Dangerous Stocks have Misleading Earnings, which means reported earnings are rising while economic earnings and ROIC are declining.
- Figures 6 and 7 show October's 40 Most Dangerous stocks. Figure 5 shows the performance of September's stocks.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Oct 2, 2007
Most Attractive Stocks for October 2007
20 Large/Mid Cap and 20 Small Cap Stocks
- 23 stocks from last month's report rose more than the S&P 500 (+5.1%). 29 stocks had positive gains. See Figure 1.
- 7 new stocks make our October lists. See Figure 3.
- All of our Most Attractive Stocks have a 'Very Attractive' rating, the best score in our Risk/Reward Rating system.
- Very Attractive stocks have high and rising returns on capital (ROIC) and low expectations for future profits.
- Figures 6 and 7 show October's 40 Most Attractive stocks. Figure 5 shows the performance of September's stocks.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Sep 25, 2007
Proof Is In Performance Thru August 2007
Most Attractive (Long) & Most Dangerous (Short) Stocks
- The Most Attractive and Most Dangerous Stocks reports offer multiple strategies to outperform in good and bad markets.
- Both our Long and our Short strategies contribute to the excess returns. These strategies also work for both Large and Small Cap stocks. See Appendix 4 for details.
- The Long/Short strategy in Figure 1 earns 22.7% from April, 2006 thru August, 2007, beating the risk-free rate by 15.5%.
- Figure 1s Long/Short strategy has also outperformed the relevant market index by approx. 13.6% in an appreciating (and turbulent) period despite being net dollar neutral.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
- Detailed explanations of our Most Attractive and Most Dangerous Stock selection methodologies are included.
Sep 5, 2007
Most Dangerous Stocks for September 2007
20 Large/Mid Cap and 20 Small Cap Stocks
- 25 stocks from last months report underperformed the S&P 500 (+1.2%). 20 stocks had negative returns. See Figure 1 below.
- 6 new stocks make our September lists. See Figure 3 below.
- All of our Most Dangerous Stocks have a 'Very Dangerous' rating, the worst score in our Risk/Reward Rating system.
- Very Dangerous Stocks have Misleading Earnings, which means reported earnings are rising while economic earnings and ROIC are declining.
- Figures 6 and 7 show September's 40 Most Dangerous stocks. Figure 5 shows the performance of August's stocks.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Sep 5, 2007
Most Attractive Stocks for September 2007
20 Large/Mid Cap and 20 Small Cap Stocks
- 16 stocks from last month's report rose more than the S&P 500 (+1.2%). 19 stocks had positive gains. See Figure 1 below.
- 7 new stocks make our September lists. See Figure 3 below.
- All of our Most Attractive Stocks have a 'Very Attractive' rating, the best score in our Risk/Reward Rating system.
- Very Attractive stocks have high and rising returns on capital (ROIC) and low market expectations for future profits.
- Figures 6 and 7 show September's 40 Most Attractive stocks. Figure 5 shows the performance of August's stocks.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Aug 2, 2007
Most Dangerous Stocks for August 2007
20 Large/Mid Cap and 20 Small Cap Stocks
- 27 stocks from last months report underperformed the S&P 500 (-4.8%). 35 stocks had negative returns. See Figure 1 below.
- 8 new stocks make our August lists. See Figure 3 below.
- All of our Most Dangerous Stocks have a 'Very Dangerous' rating, the worst score in our Risk/Reward Rating system.
- Very Dangerous Stocks have Misleading Earnings, which means reported earnings are rising while economic earnings and ROIC are declining.
- Figures 6 and 7 show August's 40 Most Dangerous stocks. Figure 5 shows the performance of July's stocks.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Aug 2, 2007
Most Attractive Stocks for August 2007
20 Large/Mid Cap and 20 Small Cap Stocks
- 14 stocks from last month's report rose more than the S&P 500 (-4.8%). 7 stocks had positive gains. See Figure 1 below.
- 10 new stocks make our August lists. See Figure 3 below.
- All of our Most Attractive Stocks have a 'Very Attractive' rating, the best score in our Risk/Reward Rating system.
- Very Attractive stocks have high and rising returns on capital (ROIC) and low expectations for future profits.
- Figures 6 and 7 show August's 40 Most Attractive stocks. Figure 5 shows the performance of July's stocks.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Jul 3, 2007
Most Attractive Stocks for July 2007
20 Large/Mid Cap and 20 Small Cap Stocks
- 18 stocks from last month's report rose more than the S&P 500 (-1.3%). 11 stocks had positive gains. See Figure 1 below.
- 8 new stocks make our July lists. See Figure 3 below.
- All of our Most Attractive Stocks have a 'Very Attractive' rating, the best score in our Risk/Reward Rating system.
- Very Attractive stocks have high and rising returns on capital (ROIC) and low expectations for future profits.
- Figures 6 and 7 show July's 40 Most Attractive stocks. Figure 5 shows the performance of June's stocks.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Jul 3, 2007
Most Dangerous Stocks for July 2007
20 Large/Mid Cap and 20 Small Cap Stocks
- 22 stocks from last months report underperformed the S&P 500 (-1.3%). 26 stocks had negative returns. See Figure 1 below.
- 5 new stocks make our July lists. See Figure 3 below.
- All of our Most Dangerous Stocks have a 'Very Dangerous' rating, the worst score in our Risk/Reward Rating system.
- Very Dangerous Stocks have Misleading Earnings, which means reported earnings are rising while economic earnings and ROIC are declining.
- Figures 6 and 7 show July's 40 Most Dangerous stocks. Figure 5 shows the performance of June's stocks.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Jun 4, 2007
Most Dangerous Stocks for June 2007
20 Large/Mid Cap and 20 Small Cap Stocks
- 21 stocks from last months report underperformed the S&P 500 (+3.4%). 12 stocks had negative returns. See Figure 1 below.
- 9 new stocks make our June lists. See Figure 3 below.
- All of our Most Dangerous Stocks have a 'Very Dangerous' rating, the worst score in our Risk/Reward Rating system.
- Very Dangerous Stocks have Misleading Earnings, which means reported earnings are rising while economic earnings and ROIC are declining.
- Figures 6 and 7 show June's 40 Most Dangerous stocks. Figure 5 shows the performance of May's stocks.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Jun 4, 2007
Most Attractive Stocks for June 2007
20 Large/Mid Cap and 20 Small Cap Stocks
- 24 stocks from Mays report rose more than the S&P 500 (+3.4%). 35 stocks had positive gains. See Figure 1 below.
- 10 new stocks make our June lists. See Figure 3 below.
- All of our Most Attractive Stocks have a 'Very Attractive' or Attractive Risk/Reward Rating.
- Very Attractive stocks have high and rising returns on capital (ROIC) and low expectations for future profits.
- Figures 6 and 7 show June's 40 Most Attractive stocks. Figure 5 shows the performance of May's stocks.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
May 1, 2007
Most Attractive Stocks for May 2007
20 Large/Mid Cap and 20 Small Cap Stocks
- 18 stocks from last month's report rose more than the S&P 500 (+4.1%). 33 stocks had positive gains. See Figure 1 below.
- 5 new stocks make our May lists. See Figure 3 below.
- All of our Most Attractive Stocks have a 'Very Attractive' rating, the best score in our Risk/Reward Rating system.
- Very Attractive stocks have high and rising returns on capital (ROIC) and low expectations for future profits.
- Figures 6 and 7 show May's 40 Most Attractive stocks. Figure 5 shows the performance of April's stocks.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
May 1, 2007
Most Dangerous Stocks for May 2007
20 Large/Mid Cap and 20 Small Cap Stocks
- 29 stocks from last months report underperformed the S&P 500 (+4.06%). 15 stocks had negative returns. See Figure 1 below.
- 8 new stocks make our May lists. See Figure 3 below.
- All of our Most Dangerous Stocks have a 'Very Dangerous' rating, the worst score in our Risk/Reward Rating system.
- Very Dangerous Stocks have Misleading Earnings, which means reported earnings are rising while economic earnings and ROIC are declining.
- Figures 6 and 7 show May's 40 Most Dangerous stocks. Figure 5 shows the performance of April's stocks.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Apr 3, 2007
Most Attractive Stocks for April 2007
20 Large/Mid Cap and 20 Small Cap Stocks
- 18 stocks from last month's report rose more than the S&P 500 (+1.52%). 21 stocks had positive gains. See Figure 1 below.
- 19 new stocks make our April lists. See Figure 3 below.
- All of our Most Attractive Stocks have a 'Very Attractive' rating, the best score in our Risk/Reward Rating system.
- Very Attractive stocks have high and rising returns on capital (ROIC) and low expectations for future profits.
- Figures 6 and 7 show April's 40 Most Attractive stocks. Figure 5 shows the performance of March's stocks.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Apr 3, 2007
Most Dangerous Stocks for April 2007
20 Large/Mid Cap and 20 Small Cap Stocks
- 23 stocks from last months report underperformed the S&P 500 (+1.52%). 16 stocks had negative returns. See Figure 1 below.
- 22 new stocks make our April lists. See Figure 3 below.
- All of our Most Dangerous Stocks have a 'Very Dangerous' rating, the worst score in our Risk/Reward Rating system.
- Very Dangerous Stocks have Misleading Earnings, which means reported earnings are rising while economic earnings and ROIC are declining.
- Figures 6 and 7 show April's 40 Most Dangerous stocks. Figure 5 shows the performance of March's stocks.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Mar 2, 2007
Most Dangerous Stocks for March 2007
20 Large/Mid Cap and 20 Small Cap Stocks
- 16 stocks from last month's report underperformed the S&P 500 (-2.18%). 25 stocks had negative returns. See Figure 116 stocks from last month's report underperformed the S&P 500 (-2.18%). 25 stocks had negative returns. See Figure 1 below.
- 20 new stocks make our March lists. See Figure 3 below.
- All of our Most Dangerous Stocks have a 'Very Dangerous' rating, the worst score in our Risk/Reward Rating system.
- Very Dangerous Stocks have Misleading Earnings, which means reported earnings are rising while economic earnings and ROIC are declining.
- Figures 6 and 7 show March's 40 Most Dangerous stocks. Figure 5 shows the performance of February's stocks.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Mar 2, 2007
Most Attractive Stocks for March 2007
20 Large/Mid Cap and 20 Small Cap Stocks
- 23 stocks from last month's report rose more than the S&P 500 (-2.18%). 18 stocks had positive gains. See Figure 1 below.
- 28 new stocks make our March lists. See Figure 3 below.
- All of our Most Attractive Stocks have a 'Very Attractive' rating, the best score in our Risk/Reward Rating system.
- Very Attractive stocks have high and rising returns on capital (ROIC) and low expectations for future profits.
- Figures 6 and 7 show March's 40 Most Attractive stocks. Figure 5 shows the performance of February's stocks.
- Institutional Investor Magazine highlighted our stock-picking ability as #1 amongst all research firms.
Feb 1, 2007
Most Dangerous Stocks for February 2007
20 Large/Mid Cap and 20 Small Cap Stocks
- 19 stocks from last months report underperformed the S&P 500 (+1.85%). 17 stocks had negative returns. See Figure 1 below.
- 23 new stocks make our January lists. See Figure 3 below.
- All of our Most Dangerous Stocks have a 'Very Dangerous' rating, the worst score in our Risk/Reward Rating system.
- Very Dangerous Stocks have Misleading Earnings, which means reported earnings are rising while economic earnings and ROIC are declining.
- Figures 5 and 6 on pages 6 and 7 show this month's stocks.
- Institutional Investor Magazine highlighted our #1 ranking for stock-picking in an October, 2005, article.
Feb 1, 2007
Most Attractive Stocks for February 2007
20 Large/Mid Cap and 20 Small Cap Stocks
- 28 stocks from last month's report rose more than the S&P 500 (+1.85%). 30 stocks had positive gains. See Figure 1 below.
- 15 new stocks make our January lists. See Figure 3 below.
- All of our Most Attractive Stocks have a 'Very Attractive' rating, the best score in our Risk/Reward Rating system.
- Very Attractive stocks have high and rising returns on capital (ROIC) and low expectations for future profits.
- Figures 5 and 6 on pages 6 and 7 show this month's stocks.
- Institutional Investor Magazine highlighted our #1 ranking for stock-picking in an October, 2005, article.
Jan 9, 2007
Most Attractive Stocks for January 2007
20 Large/Mid Cap and 20 Small Cap Stocks
- 16 stocks from last month's report rose more than the S&P 500 (+1.15%). 18 stocks had positive gains. See Figure 1 below.
- 7 new stocks make our January lists. See Figure 3 below.
- All of our Most Attractive Stocks have a 'Very Attractive' rating, the best score in our Risk/Reward Rating system.
- Very Attractive stocks have high and rising returns on capital (ROIC) and low expectations for future profits.
- Figures 5 and 6 on pages 6 and 7 show this month's stocks.
- Institutional Investor Magazine highlighted our #1 ranking for stock-picking in an October, 2005, article.
Jan 9, 2007
Most Dangerous Stocks for January 2007
20 Large/Mid Cap and 20 Small Cap Stocks
- 24 stocks from last months report underperformed the S&P 500 (+1.2%). 18 stocks had negative returns. See Figure 1 below.
- 16 new stocks make our January lists. See Figure 3 below.
- All of our Most Dangerous Stocks have a 'Very Dangerous' rating, the worst score in our Risk/Reward Rating system.
- Very Dangerous Stocks have Misleading Earnings, which means reported earnings are rising while economic earnings and ROIC are declining.
- Figures 5 and 6 on pages 6 and 7 show this month's stocks.
- Institutional Investor Magazine highlighted our #1 ranking for stock-picking in an October, 2005, article.
Dec 1, 2006
Most Dangerous Stocks for December 2006
20 Large/Mid Cap and 20 Small Cap Stocks
- 16 stocks from last months report underperformed the S&P 500 (+1.5%). 13 stocks had negative returns. See Figure 1 below.
- 9 new stocks make our December lists. See Figure 3 below.
- All of our Most Dangerous Stocks have a 'Very Dangerous' rating, the worst score in our Risk/Reward Rating system.
- Very Dangerous Stocks have Misleading Earnings, which means reported earnings are rising while economic earnings and ROIC are declining.
- Figures 5 and 6 on pages 6 and 7 show this month's stocks.
- Institutional Investor Magazine highlighted our #1 ranking for stock-picking in an October, 2005, article.
Dec 1, 2006
Most Attractive Stocks for December 2006
20 Large/Mid Cap and 20 Small Cap Stocks
- 20 stocks from last month's report rose more than the S&P 500 (+1.5%). 26 stocks had positive gains. See Figure 1 below.
- 9 new stocks make our December lists. See Figure 3 below.
- All of our Most Attractive Stocks have a 'Very Attractive' rating, the best score in our Risk/Reward Rating system.
- Very Attractive stocks have high and rising returns on capital (ROIC) and low expectations for future profits.
- Figures 5 and 6 on pages 6 and 7 show this month's stocks.
- Institutional Investor Magazine highlighted our #1 ranking for stock-picking in an October, 2005, article.
Nov 6, 2006
Most Dangerous Stocks for November 2006
20 Large/Mid Cap and 20 Small Cap Stocks
- 20 stocks from last month's report underperformed the S&P 500 (+2.48%). 16 stocks had negative returns. See Figure 1 below.
- 22 new stocks make our November lists. See Figure 3 below.
- All of our Most Dangerous Stocks have a 'Very Dangerous' rating, the worst score in our Risk/Reward Rating system.
- Very Dangerous Stocks have Misleading Earnings, which means reported earnings are rising while economic earnings and ROIC are declining.
- Figures 5 and 6 on pages 6 and 7 show this month's stocks.
- Institutional Investor Magazine highlighted our #1 ranking for stock-picking in an October, 2005, article.
Nov 6, 2006
Most Attractive Stocks for November 2006
20 Large/Mid Cap and 20 Small Cap Stocks
- 27 stocks from last month's report rose more than the S&P 500 (+2.48%). 31 stocks had positive gains. See Figure 1 below.
- 14 new stocks make our November lists. See Figure 3 below.
- All of our Most Attractive Stocks have a 'Very Attractive' or Attractive rating, the best scores in our Rating system.
- Very Attractive stocks have high and rising returns on capital (ROIC) and low expectations for future profits.
- Figures 5 and 6 on pages 6 and 7 show this month's stocks.
- Institutional Investor Magazine highlighted our #1 ranking for stock-picking in an October, 2005, article.
Oct 3, 2006
Most Dangerous Stocks for October 2006
20 Large/Mid Cap and 20 Small Cap Stocks
- 17 companies declined since our last report. 18 companies beat the S&P 500 (+1.55%). See Table 1 below.
- 24 new stocks make our October lists. See Figure 3 below.
- All of our Most Dangerous Stocks have a 'Very Dangerous' rating, the worst score in our Risk/Reward Rating system.
- Very Dangerous Stocks have Misleading Earnings, which means reported earnings are rising while economic earnings and ROIC are declining.
- Figures 5 and 6 on pages 6 and 7 show this month's stocks.
- Institutional Investor Magazine highlighted our #1 ranking for stock-picking in an October, 2005, article.
Oct 3, 2006
Most Attractive Stocks for October 2006
20 Large/Mid Cap and 20 Small Cap Stocks
- 22 companies rose since our last report. 19 companies beat the S&P 500 (+1.5%). See Table 1 below.
- 7 new stocks make our October lists. See Figure 3 below.
- All of our Most Attractive Stocks have a 'Very Attractive' rating, the best score in our Risk/Reward Rating system.
- Very Attractive stocks have high and rising returns on capital (ROIC) and low expectations for future profits.
- Figures 5 and 6 on pages 6 and 7 show this month's stocks.
- Institutional Investor Magazine highlighted our #1 ranking for stock-picking in an October, 2005, article.
Sep 5, 2006
Most Dangerous Stocks for September 2006
20 Large/Mid Cap and 20 Small Cap Stocks
- 10 stocks from last month's report declined in the last month while the S&P 500 rose 2%. See Figure 1 below.
- 20 new stocks make our September lists. See Figure 3 below.
- All of our Most Dangerous Stocks have a 'Very Dangerous' rating, the worst score in our Risk/Reward Rating system.
- Very Dangerous stocks have Misleading Earnings, which means reported earnings are rising while economic earnings and ROIC are declining.
- Figures 5 and 6 on pages 6 and 7 show this month's stocks.
- Institutional Investor Magazine highlighted our #1 ranking for stock-picking in an October 11th article.
Sep 5, 2006
Most Attractive Stocks for September 2006
20 Large/Mid Cap and 20 Small Cap Stocks
- 13 stocks from last month's report rose more than the S&P500 (+2%) in the last month. See Figure 1 below.
- 13 new stocks make our September lists. See Figure 3 below.
- All of our Most Attractive Stocks have a 'Very Attractive' rating, the best score in our Risk/Reward Rating system.
- Very Attractive stocks have high and rising returns on capital (ROIC) and low expectations for future profits.
- Figures 5 and 6 on pages 6 and 7 show this month's stocks.
- Institutional Investor Magazine highlighted our #1 ranking for stock-picking in an October 11th article.
Aug 22, 2006
Recession-Proof Stocks, as seen on Squawk Box, from New Constructs
Solid Investment Ideas, as seen on Squawk Box
- We present three "Recession-Proof" stocks that we believe will appreciate even if the economy goes into recession.
- These three stocks have target prices that offers as much as 40% upside.
- To make our "Recession-Proof" list, stocks must have valuations that already assume we are in a recession.
- We specifically design our valuation models to identify stocks whose market valuations imply that their cash flows will drastically decrease.
- Our analysis is based on studying SEC disclosures in 20,000+ annual reports for 3,000+ companies.
- For more information on how to find "Recession-Proof" stocks, go to www.newconstructs.com to access our reports and models on 3,000+ companies.
Aug 7, 2006
Most Attractive Stocks for August 2006
20 Large/Mid Cap and 20 Small Cap Stocks
- 17 stocks from July's report rose more than the S&P500 (+0.7%) in the last month. See Figure 1 below.
- 8 new stocks make our August lists. See Figure 3 below.
- All of our Most Attractive Stocks have a 'Very Attractive' rating, the best score in our Risk/Reward Rating system.
- Very Attractive stocks have high and rising returns on capital (ROIC) and low expectations for future profits.
- Figures 5 and 6 on pages 6 and 7 show this month's stocks.
- Institutional Investor Magazine highlighted our #1 ranking for stock-picking in an October 11th article.
Aug 7, 2006
Most Dangerous Stocks for August 2006
20 Large/Mid Cap and 20 Small Cap Stocks
- 19 stocks from July's report dropped at least 1% in the last month while the S&P 500 rose 0.7%. See Figure 1 below.
- 18 new stocks make our August lists. See Figure 3 below.
- All of our Most Dangerous Stocks have a 'Very Dangerous' rating, the worst score in our Risk/Reward Rating system.
- Very Dangerous Stocks have Misleading Earnings, which means reported earnings are rising while economic earnings and ROIC are declining.
- Figures 5 and 6 on pages 6 and 7 show this month's stocks.
- Institutional Investor Magazine highlighted our #1 ranking for stock-picking in an October 11th article.
Jul 24, 2006
The Common Thread in Option Expense Scandals
How We Identified High-Risk Stocks Before They Blew Up
- This report provides a warning list of stocks that share a key Common Thread with companies under investigation.
- All companies now under investigation made option grants that resulted in unreported expense equal to at least 5% of revenues or 13% of earnings sometime in the past 5 years.
- See Figures 1-4 for stocks not under investigation, BUT had unreported options expense greater than those already under investigation during the past 5 years.
- Our analysis of 20,000+ option grants for 3000+ companies reveals unreported options expenses over the past 8 years.
- There are 1162 companies whose annual option grants in the past 5 years result in an unreported expense equal to 25% or more of revenues or 50% or more of earnings.
- For more information on how option grants affect profits, go to www.newconstructs.com to access our reports and models on over 3000 companies.
- Many of the stocks listed in this report are the most likely targets of potential SEC or Justice Department inquiry.
- These companies' stocks are at the greatest risk of declining because of regulatory inquiry, earnings restatement, or earnings disappointments.
Jul 20, 2006
Who Has The Most Off-Balance-Sheet Debt?
Our Study Shows Who Suffers Most If FASB Changes Lease Rules
- Nearly 650 companies have off-balance-sheet debt equal to 5% or more of their market capitalization.
- Our study reveals the Net Present Value of the operating lease obligations for over 2500 stocks.
- This report provides a list of the companies with the most off-balance-sheet debt. See Figures 1 and 2.
- Our analysis is based on studying operating lease disclosures in 20,000+ annual reports for 3000+ companies.
- If FASB forces operating leases onto corporate balance sheets, Continental Airlines and Borders may suffer most. See Figure 2.
- For more information on how off-balance sheet debt affects companies, go to www.newconstructs.com to access our reports and models on over 3000 companies.
- Figure 3 on page 4 shows the Top 100 companies with the most off-balance-sheet financing.
Jul 6, 2006
Most Attractive Stocks for July 2006
20 Large/Mid Cap and 20 Small Cap Stocks
- 22 stocks from June's report rose more than the S&P500 (+0.6%) in the last month. See Figure 1 below.
- 5 new stocks make our July lists. See Figure 3 below.
- All of our Most Attractive Stocks have a 'Very Attractive' rating, the best score in our Risk/Reward Rating system.
- Very Attractive stocks have high and rising returns on capital (ROIC) and low expectations for future profits.
- Figures 5 and 6 on pages 6 and 7 show this month's stocks.
- Institutional Investor Magazine highlighted our #1 ranking for stock-picking in an October 11th article.
Jul 6, 2006
Most Dangerous Stocks for July 2006
20 Large/Mid Cap and 20 Small Cap Stocks
- 17 stocks from June's report dropped at least 1% in the last month while the S&P 500 rose 0.6%. See Figure 1 below.
- 11 new stocks make our July lists. See Figure 3 below.
- All of our Most Dangerous Stocks have a 'Very Dangerous' rating, the worst score in our Risk/Reward Rating system.
- Very Dangerous Stocks have Misleading Earnings, which means reported earnings are rising while economic earnings and ROIC are declining.
- Figures 5 and 6 on pages 6 and 7 show this month's stocks.
- Institutional Investor Magazine highlighted our #1 ranking for stock-picking in an October 11th article.
Jun 5, 2006
Most Attractive Stocks for June 2006
20 Large/Mid Cap and 20 Small Cap Stocks
- 20 stocks from May's report rose more than the S&P500 (-4.5%) in the last month. See Figure 1 below.
- 6 new stocks make our June lists. See Figure 3 below.
- All of our Most Attractive Stocks have a 'Very Attractive' rating, the best score in our Risk/Reward Rating system.
- Very Attractive stocks have high and rising returns on capital (ROIC) and low expectations for future profits.
- Figures 5 and 6 on pages 6 and 7 show this month's stocks.
- Institutional Investor Magazine highlighted our #1 ranking for stock-picking in an October 11th article.
Jun 5, 2006
Most Dangerous Stocks for June 2006
20 Large/Mid Cap and 20 Small Cap Stocks
- 33 stocks from May's report dropped at least 1% in the last month. 23 stocks dropped more than the S&P 500 (-4.5%). See Figure 1 below.
- 7 new stocks make our June lists. See Figure 3 below.
- All of our Most Dangerous Stocks have a 'Very Dangerous' rating, the worst score in our Risk/Reward Rating system.
- Very Dangerous Stocks have Misleading Earnings, which means reported earnings are rising while economic earnings and ROIC are declining.
- Figures 5 and 6 on pages 6 and 7 show this month's stocks.
- Institutional Investor Magazine highlighted our #1 ranking for stock-picking in an October 11th article.
May 9, 2006
Most Dangerous Stocks for May 2006
20 Large/Mid Cap and 20 Small Cap Stocks
- 25 stocks from April's report declined at least 1% in the last month while the S&P500 rose +2.3%. See Figure 1 below.
- 18 new stocks make our May lists. See Figure 3 below.
- All of our Most Dangerous Stocks have a 'Very Dangerous' rating, the worst score in our Risk/Reward Rating system.
- Very Dangerous Stocks have Misleading Earnings, which means reported earnings are rising while economic earnings and ROIC are declining.
- Figures 5 and 6 on pages 6 and 7 show this month's stocks.
- Institutional Investor Magazine highlighted our #1 ranking for stock-picking in an October 11th article.
May 9, 2006
Most Attractive Stocks for May 2006
20 Large/Mid Cap and 20 Small Cap Stocks
- 26 stocks from April's report rose more than the S&P500 (+2.3%) in the last month. See Figure 1 below.
- 16 new stocks make our May lists. See Figure 3 below.
- All of our Most Attractive Stocks have a 'Very Attractive' rating, the best score in our Risk/Reward Rating system.
- Very Attractive stocks have high and rising returns on capital (ROIC) and low expectations for future profits.
- Figures 5 and 6 on pages 6 and 7 show this month's stocks.
- Institutional Investor Magazine highlighted our #1 ranking for stock-picking in an October 11th article.
May 3, 2006
Top 300 Option Expense Offenders
Past Expenses Are Signs of Earnings Pain to Come
- Beware companies with heavy options expenses in the past. There are over 100 companies whose unreported option expense reduces profit margins by 25% or more.
- Companies will eventually have to pay the price of their options sins even if they report good first quarter results.
- Analyzing past option expenses helps investors prepare for the impact of options expensing on reported earnings.
- This report lists 300 companies whose earnings could be impacted worst when they report option expenses.
- We provide options expense analysis for over 3000 companies for up to ten years of history.
- We also outline the loopholes that companies can exploit to understate option expenses reported in earnings.
- This report ranks options grants for large and small cap companies via: (1) % of revenue, (2) % of Net Income, (3) gross $ amount, (4) % increase and (5) $ increase.
Apr 9, 2006
Most Attractive Stocks for April 2006
20 Large/Mid Cap and 20 Small Cap Stocks
- 20 stocks from March's report rose more than the S&P500 (+0.5%) in the last month. See Figure 1 below.
- Most of the stocks in this month's report are new because we updated our Most Attractive Stocks selection methodology
- We have more directly aligned our Most Attractive Stocks selection methodology with our Risk/Reward Rating System.
- All stocks on our Most Attractive list now must have a 'Very Attractive' rating, which is our best Overall rating.
- Our Risk/Reward Rating system grades 3000+ stocks according to a 5-point scale.
- A detailed explanation of our Risk/Reward Rating system is included in the report.
- Figures 3 and 4 on pages 5 and 6 show this month's stocks.
- Institutional Investor Magazine highlighted our #1 ranking for stock-picking in an October 11th article.
Apr 9, 2006
Most Dangerous Stocks for April 2006
20 Large/Mid Cap and 20 Small Cap Stocks
- 14 stocks from March's report declined at least 1% in the last month. See Figure 1 below.
- Most of the stocks in this month's report are new because we updated our Most Dangerous Stocks selection methodology
- We have more directly aligned our Most Dangerous Stocks selection methodology with our Risk/Reward Rating System.
- All stocks on our Most Dangerous Lists now must have a 'Very Dangerous' rating, which is our worst Overall rating.
- Our Risk/Reward Rating system grades 3000+ stocks according to a 5-point scale.
- A detailed explanation of our Risk/Reward Rating system is included in this report.
- Figures 3 and 4 on pages 5 and 6 show this month's stocks.
- Institutional Investor Magazine highlighted our #1 ranking for stock-picking in an October 11th article.
Mar 3, 2006
Most Dangerous Stocks for March 2006
20 Large/Mid Cap and 20 Small Cap Stocks
- Key Highlights: price decreases in the past month move 2 stocks off the lists: VRNT (-4%) and KWK (-21%).
- Figure 1 in the attached report details all additions and deletions to the lists.
- Figure 2 highlights 2 stocks with price drops greater than 5% that remain on the list.
- Figures 3 and 4 show the 20 Large Cap and 20 Small Cap Dangerous stocks.
- Our Most Dangerous Stocks have MISLEADING EARNINGS, which means reported profits are positive and rising while actual profits are negative and falling.
- Pages 2-4 explain our stock selection methodology.
- Institutional Investor Magazine highlighted our #1 ranking for stock-picking in an October 11th article.
Mar 3, 2006
Most Attractive Stocks for March 2006
20 Large/Mid Cap and 20 Small Cap Stocks
- Key Highlights: price gains in the past month move 5 stocks off the lists: PPG (10%), ACF (6%), MRK (4%), TCB (4%) and HAMP (3%).
- Figure 1 details all additions and deletions to the list. Figure 2 highlights 8 stocks with price gains greater than 5% that remain on the list.
- Figures 3 and 4 provide the full list of 20 Large Cap and 20 Small Cap Attractive stocks.
- Institutional Investor Magazine highlighted our #1 ranking for stock-picking in an October 11th article.
Feb 9, 2006
Materials Sector: Downgrade to Neutral
Assessing Economic Earnings and Market Expectations
- We downgraded the Materials Sector to Neutral from an Attractive rating.
- Overall Neutral Risk/Reward means the Sector offers approximately equal upside potential and downside risk.
- Materials is one of eight sectors to have a Neutral Risk/Reward score in our system.
- 4 Very Attractive Stocks in the Materials Sector: LPX, NUE, VHI and X.
- Figure 1 summarizes the five factors that comprise our Attractive score and provides key insights into the profitability and valuation of the Sector.
- Detailed definitions and explanations of each criterion in Figure 1 are provided in the report.
- "Rising EP" means that economic EPS are positive and rising, and the Sector's ROIC ranks in the 3rd Quintile.
- This report represents an aggregation of fifty-two companies from the Russell 1000 in the Materials Sector.
Feb 9, 2006
Consumer Discretionary: Dangerous Risk/Reward
Assessing Economic Earnings and Market Expectations
- Overall Dangerous Risk/Reward means the Sector offers more downside risk than upside potential, in our opinion.
- The Consumer Discretionary Sector is Dangerous because its valuation implies future financial performance that is significantly greater than its historical performance.
- Consumer Discretionary is one of two sectors to have a Dangerous Risk/Reward score in our system.
- 3 Very Attractive Stocks in the Consumer Discretionary Sector: F, MVL and RSH.
- Figure 1 summarizes the five factors that comprise our Dangerous score and provides key insights into the profitability and valuation of the Sector.
- Detailed definitions and explanations of each criterion in Figure 1 are provided in the report.
- "Neutral" means that economic EPS are negative but rising. The Sector's ROIC ranks in the 3rd Quintile.
- This report represents an aggregation of one hundred sixty-one companies from the Russell 1000 in the Consumer Discretionary Sector.
Feb 9, 2006
Consumer Staples: Downgrade to Neutral
Assessing Economic Earnings and Market Expectations
- We downgraded the Consumer Staples Sector to Neutral from an Attractive rating.
- Overall Neutral Risk/Reward means the Sector offers approximately equal upside potential and downside risk.
- Consumer Staples one of eight sectors to achieve a Neutral Risk/Reward score in our system.
- There are 6 Very Attractive Stocks in the Consumer Staples Sector. The top 2 are MO and UST.
- Figure 1 summarizes the five factors that comprise our Neutral score and provides key insights into the profitability and valuation of the Sector.
- Detailed definitions and explanations of each criterion in Figure 1 are provided in the report.
- "Rising EP" means that economic EPS are positive and rising, and the Sector's ROIC ranks in the 2nd Quintile.
- This report represents an aggregation of forty-seven companies from the Russell 1000 in the Sector.
Feb 9, 2006
S&P 500: Neutral Risk/Reward Score
Economic Earnings and Financial Expectations for the Index
- An Overall Neutral Risk/Reward Score means the Index does not have particularly Dangerous or Attractive Profitability or Valuation characteristics.
- Figure 1 summarizes the five factors that comprise our Neutral assessment. Figure 1 provides key insights into the profitability and valuation of the S&P 500.
- "Rising EP" means that economic earnings are positive and rising.
- The S&P 500 market-weighted average ROIC ranks in the 2nd Quintile.
- Detailed definitions and explanations of each criterion in Figure 1 are provided in the report.
- This report provides key benchmarks from the S&P 500 for analyzing the unique profitability and valuation metrics offered by New Constructs for over 3400 stocks.
Feb 9, 2006
Russell 1000: Neutral Risk/Reward Score
Economic Earnings and Financial Expectations for the Index
- An Overall Neutral Risk/Reward Score means the Index does not have particularly Dangerous or Attractive Profitability or Valuation characteristics.
- Figure 1 summarizes the five factors that comprise our Neutral rating and provides key insights into the profitability and valuation of the Russell 1000.
- Versus the S&P 500, the valuation of the Russell 1000 is slightly higher. The economic performance and growth of the two indices are inline.
- "Rising EP" means that economic earnings are positive and rising.
- The Russell 1000 market-weighted average ROIC ranks in the 2nd Quintile.
- Detailed definitions and explanations of each criterion in Figure 1 are provided in the report.
- This report provides key benchmarks from the Russell 1000 for analyzing the unique profitability and valuation metrics offered by New Constructs for over 3000 stocks.
Feb 9, 2006
Utilities Sector: Upgrade to Neutral Rating
Assessing Economic Earnings and Market Expectations
- We upgraded the Utilities Sector to Neutral from a Dangerous rating.
- Overall Neutral Risk/Reward means the Sector offers approximately equal downside risk and upside potential, in our opinion.
- Utilities is one of eight sectors to achieve a Neutral Risk/Reward score in our system.
- One Very Attractive Stock in the Utilities Sector: CNP
- Figure 1 summarizes the five factors that comprise our Dangerous score and provides key insights into the profitability and valuation of the Sector.
- Detailed definitions and explanations of each criterion in Figure 1 are provided in the report.
- "Neutral" EP means that economic EPS are negative but rising. The Sector's ROIC ranks in the 4th Quintile.
- This report represents an aggregation of sixty-one companies from the Russell 1000 in the Utilities Sector.
Feb 9, 2006
Telecom Sector: Downgrade to Dangerous
Assessing Economic Earnings and Market Expectations
- We downgraded the Telecom Services Sector to Dangerous from a Neutral rating.
- Overall Dangerous Risk/Reward means the Sector has less upside potential than downside risk, in our opinion.
- Telecommunication Services is one of two sectors to achieve a Dangerous Risk/Reward score in our system.
- 2 Attractive Stocks in the Telecommunication Services Sector: AT and CTL.
- Figure 1 summarizes the five factors that comprise our Dangerous score and provides key insights into the profitability and valuation of the Sector.
- Detailed definitions and explanations of each criterion in Figure 1 are provided in the report.
- "Neutral" EP means that economic EPS are negative but rising, and the Sector's ROIC ranks in the Bottom Quintile.
- This report represents an aggregation of fifteen companies from the Russell 1000 in the Telecom. Sector.
Feb 9, 2006
Info. Tech. Sector: Neutral Risk/Reward
Assessing Economic Earnings and Market Expectations
- Overall Neutral Risk/Reward means the Sector approximately equal upside potential and downside risk, in our opinion.
- Information Technology is one of eight sectors to achieve a Neutral Risk/Reward score in our system.
- 2 Attractive Stocks in the Information Technology Sector: FSIV and LXK.
- Figure 1 summarizes the five factors that comprise our Neutral score and provides key insights into the profitability and valuation of the Sector.
- Detailed definitions and explanations of each criterion in Figure 1 are provided in the report.
- "Rising EP" means that economic EPS are positive and rising, and the Sector's ROIC ranks in the Top Quintile.
- This report represents an aggregation of one hundred thirty-three companies from the Russell 1000 in the Information Technology Sector.
Feb 9, 2006
Industrials Sector: Neutral Risk/Reward
Assessing Economic Earnings and Market Expectations
- Overall Neutral Risk/Reward means the Sector offers approximately equal upside potential and downside risk, in our opinion.
- Industrials is one of eight sectors to have a Neutral Risk/Reward score in our system.
- 3 Very Attractive Stocks in the Industrials Sector: NVR, OSG and SVM.
- Figure 1 summarizes the five factors that comprise our Neutral score and provides key insights into the profitability and valuation of the Sector.
- Detailed definitions and explanations of each criterion in Figure 1 are provided in the report.
- "Rising EP" means that economic EPS are positive and rising, and the Sector's ROIC ranks in the 3rd Quintile.
- This report represents an aggregation of one hundred eighteen Industrial Sector companies from the Russell 1000.
Feb 9, 2006
Health Care Sector: Neutral Risk/Reward
Assessing Economic Earnings and Market Expectations
- Overall Neutral Risk/Reward means the Sector offers approximately equal upside potential and downside risk, in our opinion.
- Health Care is one of eight sectors to have a Neutral Risk/Reward score in our system.
- There is one Very Attractive Stock in the Health Care Sector: MRK.
- Figure 1 summarizes the five factors that comprise our Neutral score and provides key insights into the profitability and valuation of the Sector.
- Detailed definitions and explanations of each criterion in Figure 1 are provided in the report.
- "Rising EP" means that economic EPS are positive and rising. The Sector's ROIC ranks in the 2nd Quintile.
- This report represents an aggregation of ninety-seven companies from the Russell 1000 in the Health Care Sector.
Feb 9, 2006
Financials Sector: Neutral Risk/Reward
Assessing Economic Earnings and Market Expectations
- Overall Neutral Risk/Reward means the Sector offers approximately equal upside potential and downside risk, in our opinion.
- Financials is one of eight sectors to have a Neutral Risk/Reward score in our system.
- There are 9 Very Attractive Stocks in the Financials Sector. The top 2 are TMK and PCL.
- Figure 1 summarizes the five factors that comprise our Neutral score and provides key insights into the profitability and valuation of the Sector.
- Detailed definitions and explanations of each criterion in Figure 1 are provided in the report.
- "Positive EP" means that economic and reported EPS are positive, and the Sector's ROIC ranks in the 2nd Quintile.
- This report represents an aggregation of two hundred six companies from the Russell 1000 in the Financials Sector.
Feb 9, 2006
Energy Sector: Downgrade to Neutral
Assessing Economic Earnings and Market Expectations
- We downgraded the Energy Sector to Neutral from an Attractive rating.
- Overall Neutral Risk/Reward means the Sector offers approximately equal upside potential and downside risk.
- Energy is one of eight sectors to achieve a Neutral Risk/Reward score in our system.
- There are 6 Very Attractive Stocks in the Energy Sector. The top 2 are TSO and XOM.
- Figure 1 summarizes the five factors that comprise our Neutral score and provides key insights into the profitability and valuation of the Sector.
- Detailed definitions and explanations of each criterion in Figure 1 are provided in the report.
- "Rising EP" means that economic EPS are positive and rising, and the Sector's ROIC ranks in the 2nd Quintile.
- This report represents an aggregation of fifty-three companies from the Russell 1000 in the Energy Sector.
Feb 8, 2006
Most Attractive Stocks for February 2006
20 Large/Mid Cap and 20 Small Cap Stocks
- Key Highlights: price gains in the past month move 3 stocks off the lists: CLF (5%), FRD (19%) and CRS (9%).
- Figure 1 details all additions and deletions to the list.
- Figure 2 highlights 5 stocks with price gains greater than 5% that remain on the list.
- Figures 3 and 4 provide the full list of 20 Large Cap and 20 Small Cap Attractive stocks.
- Pages 2-4 explain our Most Attractive stock selection methodology.
- Institutional Investor Magazine highlighted our #1 ranking for stock-picking on October 11, 2005.
Feb 8, 2006
Most Dangerous Stocks for February 2006
20 Large/Mid Cap and 20 Small Cap Stocks
- Key Highlights: price decreases in the past month move 4 stocks off the lists: HPQ (-5%), AGE (-3%), FLDR (-13%) and DTAS (-2%).
- Figure 1 details all additions and deletions to the list.
- Figure 2 highlights 7 stocks with price drops greater than 5% that remain on the list.
- Figures 3 and 4 show the 20 Large Cap and 20 Small Cap Dangerous stocks.
- Pages 2-4 explain our stock selection methodology.
- Institutional Investor Magazine highlighted our #1 ranking for stock-picking on October 11, 2005.
Feb 2, 2006
Sector Roadmap for Equity Asset Allocation
1st Quarter, 2006, Update of Aggregation Analysis
- There are no Attractive Sectors in the market, in our opinion. There are 2 Dangerous and 8 Neutral Sectors.
- Materials, Energy and Consumer Staples Sectors moved from an Attractive to a Neutral rating due to higher market valuation.
- Telecom Services Sector moved from Neutral to Dangerous due to declining ROIC and Free Cash Flow Yield.
- Utilities Sector moved from Dangerous to Neutral due to a lower valuation.
- Consumer Discretionary remains a Dangerous Sector.
- The S&P 500 and Russell 1000 keep a Neutral Rating.
- Detailed analyses on each sector, the S&P500 and the Russell 1000 are available to subscribers.
Jan 13, 2006
Most Dangerous Stocks for January 2006
20 Large/Mid Cap and 20 Small Cap Stocks
- Key Highlights: price decreases in the past month move 3 stocks off the lists: BYD (-3%), ADP (-2%) and SIVBE (-4%).
- Figure 1 in the attached report details all additions and deletions to the lists.
- Figures 3 and 4 show the 20 Large Cap and 20 Small Cap Dangerous stocks.
- Institutional Investor Magazine highlighted our #1 ranking for stock-picking amongst ALL research firms on October 11th, 2005.
Jan 13, 2006
Most Attractive Stocks for January 2006
20 Large/Mid Cap and 20 Small Cap Stocks
- Key Highlights: price gains in the past month move 6 stocks off the lists: USG (18%), ADM (9%), PCU (4%), CYBE (15%), GFR (12%) and OMG (5%).
- Figure 1 in the attached report details all additions and deletions to the list.
- Figures 3 and 4 provide the full list of 20 Large Cap and 20 Small Cap Attractive stocks.
- Institutional Investor Magazine highlighted our #1 ranking for stock-picking amongst ALL research firms in an October 11th, 2005 article.
Dec 5, 2005
Most Attractive Stocks for December 2005
20 Large/Mid Cap and 20 Small Cap Stocks
- Key Highlights: price gains in the past month move 5 stocks off the lists: MWD (8%), AMG (1%), ELNK (7%), HAMP (4%) and RHB (2%).
- Figure 1 details all additions and deletions.
- Figure 2 highlights stocks with meaningful price gains that remain on the list.
- Figures 3 and 4 provide the full list of 20 Large Cap and 20 Small Cap Attractive stocks.
- Pages 2-4 explain our Most Attractive stock selection methodology.
- Institutional Investor Magazine highlighted our #1 ranking for stock-picking in an October 11th article.
Dec 5, 2005
Most Dangerous Stocks for December 2005
20 Large/Mid Cap and 20 Small Cap Stocks
- Key Highlights: price increases in the past month move one stock off the lists: SYKE (-5%).
- Figure 1 details all additions and deletions.
- Figure 2 highlights stocks with meaningful price drops that remain on the list.
- Figures 3 and 4 show the 20 Large Cap and 20 Small Cap Dangerous stocks.
- Our Most Dangerous Stocks have MISLEADING EARNINGS, which means reported profits are positive and rising while actual profits are negative and falling.
- Pages 2-4 explain our Most Dangerous Stocks selection methodology.
- Institutional Investor Magazine highlighted our #1 ranking for stock-picking in an October 11th article.
Nov 9, 2005
Most Attractive Stocks for November 2005
20 Large/Mid Cap and 20 Small Cap Stocks
- Key Highlights: price gains in the past month move 10 stocks off the lists: LRCX (up 21%), SAFC (7%), ACN (6%), HUBB (3%), TWI (28%), ASCEF (22%), TONE (11%), PLFE (5%), MRD (3%) and CAO (2%).
- 5 new large cap and 6 new small cap stocks make the November Most Attractive Lists.
- Figure 1 details all additions and deletions.
- Our Most Attractive stocks have rising ROICs, combined with low expectations for future cash flows and current Free-Cash-Flow Yields greater than 5%.
- Figures 2 and 3 provide the full list of 20 Large Cap and 20 Small Cap Attractive stocks.
- Pages 2-4 explain our Most Attractive stock selection methodology.
Nov 9, 2005
Most Dangerous Stocks for November 2005
20 Large/Mid Cap and 20 Small Cap Stocks
- Key Highlights: price drops in the past month move 4 stocks off the lists: CCC (-31%), PKTR (-30%), KEYW (-17%) and LG (-8%).
- One new large cap and 5 new small cap stocks make the November Most Dangerous Lists.
- Details on all additions and deletions to the lists are in Figure 1 and Appendix 1. Figures 2 and 3 show the 20 Large Cap and 20 Small Cap Dangerous stocks.
- Our Most Dangerous Stocks have MISLEADING EARNINGS, which means reported profits are positive and rising while actual profits are negative and falling.
- Pages 2-4 in the attached report explain our Most Dangerous Stocks selection methodology.
Oct 11, 2005
Sector Roadmap for Equity Asset Allocation
4th Quarter, 2005, Aggregation Analysis Update
- The Consumer Staples Sector moved from Neutral to Attractive due to improving profit margins.
- The Industrials and Telecom Services Sectors moved from Dangerous to Neutral ratings due to declines in valuation.
- The Utilities Sector moved from Neutral to Dangerous due to an increase in valuation and decline in profit margins.
- Energy and Materials remain Attractive Sectors. Consumer Discretionary remain a Dangerous Sector.
- Detailed summaries for each sector and index are provided in the full report available via the document link below.
- Figure 1 in the report ranks all 10 Sectors and compares them to the Russell 1000 and S&P 500.
- Please contact us for detailed reports on any of the sectors or indices highlighted in this report.
Oct 3, 2005
Most Dangerous Stocks for October 2005
20 Large/Mid Cap and 20 Small Cap Stocks
- Key Highlights: price drops in the past month push 3 stocks off the lists: EDMC (- 4%), CRAI (-11%), and LAD (-2%).
- 3 new large cap and 5 new small cap stocks make the October Most Dangerous lists.
- Details on all additions and deletions to the lists are in Figure 1 and Appendix 1 in the attached report. Figures 2 and 3 show the 20 Large Cap and 20 Small Cap Dangerous stocks.
- Our Most Dangerous Stocks have MISLEADING EARNINGS, which means reported profits are positive and rising while actual profits are negative and falling.
- Pages 2-4 in the attached report explain our Most Dangerous Stocks selection methodology.
Oct 3, 2005
Most Attractive Stocks for October 2005
20 Large/Mid Cap and 20 Small Cap Stocks
- Key Highlights: price gains in the past month push 5 stocks off the lists: BSC (up 11%), CNF (5%), NL (38%), CLF (25%) and ATAC (13%).
- 2 new large cap and 5 new small cap stocks make the October Most Attractive lists.
- Figure 1 in the attached report details all additions and deletions.
- Our Most Attractive stocks have rising ROICs, low expectations for future cash flows and current Free-Cash-Flow Yields greater than 5%.
- Figures 2 and 3 in the attached report provide the full list of 20 Large Cap and 20 Small Cap Attractive stocks.
- Pages 2-4 explain our Most Attractive stock selection methodology.
Sep 9, 2005
Most Dangerous Stocks for September 2005
20 Large/Mid Cap and 20 Small Cap Stocks
- Key Highlight: material price decline in past month pushed CNT (down 4%) off our lists.
- 2 new large cap and 1 new small cap stocks make the September Most Dangerous lists.
- Details on all additions and deletions to the lists are in Figure 1 and Appendix 1 in the attached report.
- Our Most Dangerous Stocks have MISLEADING EARNINGS, which means reported profits are positive and rising while actual profits are negative and falling.
- Our Most Dangerous Stocks are also EXPENSIVE, which means market expectations for future cash profits are substantially greater than historical cash profits.
- Figures 2 and 3 provide the full list of 20 Large Cap and 20 Small Cap Dangerous stocks.
- Pages 2-4 explain our Most Dangerous Stocks selection methodology.
Sep 9, 2005
Most Attractive Stocks for September 2005
20 Large/Mid Cap and 20 Small Cap Stocks
- Key Highlights: material price appreciation in August pushed the following stocks off our lists: USG (up 31%), HSII (15%), BHO (3%), and EFD (3%).
- 3 new large cap and 7 new small cap stocks make the September Most Attractive lists.
- Figure 1 and Appendix 1, in the attached report, detail all additions and deletions for the September Most Dangerous lists.
- Our Most Attractive stocks have rising ROICs, low expectations for future cash flows and current Free-Cash-Flow Yields greater than 5%.
- Figures 2 and 3 provide the full list of 20 Large Cap and 20 Small Cap Attractive stocks.
- Pages 2-4 explain our Most Attractive stock selection methodology.
Aug 29, 2005
Helping Solve the Options Problems
Closing the Reporting Loopholes for Option Expensing
- We solve the analytical problems caused by companies that exploit the SEC's leniency regarding option expensing
- We implement FAS 123 consistently and accurately across 3400+ companies for up to 9 years of history
- Option grants cause two problems: (1) many companies do not report an expense for option grants and (2) companies value the grants inconsistently
- We provide a truer representation of the economic costs of issuing options as compensation than required by GAAP for 3400+ companies and up to 9 years of history
- We provide 100% visibility into the impact of option grants by presenting an accurate option expense along with all of the assumptions used to derive the expense
- Figure 1 highlights ten firms whose earnings suffer the most when options expenses are appropriately recognized
Aug 5, 2005
Most Attractive Stocks for August 2005
20 Large/Mid Cap and 20 Small Cap Stocks
- Our Most Attractive Stocks provide unique investment ideas generated by our analysis of SEC filings, especially the Notes to the Financial Statements, for over 3400 companies.
- 3 new stocks make our August Large Cap list.
- 4 new stocks make our August Small Cap list.
- Figure 1, in the attached report, lists the tickers added to and deleted from our Large and Small Cap Lists. Appendix 1 details the reasons behind each addition and deletion.
- Our Most Attractive Stocks have RISING ROICs, which means the economics of the businesses are improving.
- Our Most Attractive stocks are also very cheap, with low expectations for future cash flows and current Free-Cash-Flow Yields greater than 5%.
- Figures 2 and 3 provide the full list of 20 Large Cap and 20 Small Cap Attractive stocks.
- Pages 2-4 explain our Most Attractive stocks
selection methodology.
Aug 5, 2005
Most Dangerous Stocks for August 2005
20 Large/Mid Cap and 20 Small Cap Stocks
- Our Most Dangerous Stocks provide unique investment ideas generated by our analysis of SEC filings, especially the Notes to the Financial Statements, for over 3400 companies.
- 1 new stock makes our August Large Cap list.
- 4 new stocks make our August Small Cap list.
- Figure 1, in the attached report, lists the tickers added to and deleted from our Large and Small Cap Lists. Appendix 1 details the reasons behind each addition and deletion.
- Our Most Dangerous Stocks have MISLEADING EARNINGS, which means reported profits are positive and rising while actual profits are negative and falling.
- We identify the most expensive stocks by looking for stocks with the highest expectations for future cash profits versus true, historical profits.
- Figures 2 and 3 provide the full list of 20 Large Cap and 20 Small Cap Dangerous stocks.
- Pages 2-4 explain our Most Dangerous Stocks selection methodology.
Jul 24, 2005
Don't Trust the Reported Option Expenses
SEC and FASB Provide Loopholes To Lower Options Expense
- Though requiring companies to report option expenses, FASB and the SEC have offered Corporate America a loophole to soften the blow to the bottom line.
- Current accounting rules allow companies to lower option costs by simply altering - without explanation - the assumptions that drive their option pricing models.
- Heavy option issuers, such as Juniper and Molson Coors, are exploiting the loophole to reduce ESO expenses considerably. See Figure 1 for details.
- The only way to assess the legitimacy of option costs is to analyze details from the Notes to the Financial Statements.
- As detailed in the July 25th edition of Forbes Magazine, New Constructs is the ONLY research firm that culls all important option (and other important) data from.
- Figure 1 highlights five (of 200+) firms that exploited the loophole to boost pro forma EPS the most. Figure 2 in the report shows there are 200+ companies doing.
Jul 8, 2005
Most Dangerous Stocks for July 2005
20 Large/Mid Cap and 20 Small Cap Stocks
- Our Most Dangerous Stocks provide investors with unique investment ideas generated by our forensic analysis of 10K filings for over 3000 companies
- 3 new stocks make our July Large Cap list. Price appreciation elevated 2 stocks to Most Dangerous status. 1 companys recent 10K reflected a Most Dangerous profit decline
- 3 new stocks make our July Small Cap list. Price appreciation elevated 1 stock to Most Dangerous status. 2 stocks are recent additions to coverage
- Our Most Dangerous Stocks have MISLEADING EARNINGS, which means reported profits are positive and rising while actual profits are negative and falling
- We identify the most expensive stocks by looking for stocks with the highest expectations for future cash profits versus true, historical profits
- Figure 1 in the attached report shows the 10 Most Dangerous Large Cap Stocks for July
- Figures 2 and 3 provide the full list of 20 Large Cap and 20 Small Cap Dangerous stocks
- Pages 2-4 explain our Most Dangerous Stocks selection methodology
Jul 8, 2005
Most Attractive Stocks for July 2005
20 Large/Mid Cap and 20 Small Cap Stocks
- Our Most Attractive Stocks provide investors with unique investment ideas generated by our forensic analysis of 10K filings for over 3000 companies.
- 3 new stocks make our July Large Cap list because price appreciation pushed 2 others off the list. 1 stock was eliminated as a new 10K revealed a drop in ROIC.
- 8 new stocks make our July Small Cap list because price appreciation pushed 8 others off the list.
- Our Most Attractive Stocks have RISING ROICs, which means the economics of the businesses are improving.
- Our Most Attractive stocks are also very cheap, with low expectations for future cash flows and Free-Cash-Flow Yields greater than 5%.
- Figure 1 in the attached report shows the 10 Most Attractive Large Cap Stocks for July.
- Figures 2 and 3 provide the full list of 20 Large Cap and 20 Small Cap Attractive stocks.
- Pages 2-4 explain our Most Attractive stocks selection methodology.
Jun 13, 2005
Roadmap for Portfolio Asset Allocation
Aggregation Analysis: S&P 500, Russell 1000 and All Sectors
- This report enables more informed decisions for sector- based investment strategies and asset allocation.
- The Energy and Materials sectors have Attractive ratings.
- Consumer Discretionary, Industrials, and Telecom Services sectors have Dangerous ratings.
- The Materials Sector moved from Dangerous to Attractive due to improvement in its ROIC and decline in valuation.
- The Information Technology Sector moved from Dangerous to Neutral due to improvement in its ROIC.
- Telecom Services moved from Neutral to Dangerous due to decline in its Free Cash Flow Yield.
- All other sectors have a Neutral Risk/Reward rating, which is in line with the S&P 500 and the Russell 1000.
- Detailed summaries, including an overview of the Most Attractive and Dangerous stocks, for each sector follow.
Jun 6, 2005
Most Dangerous Stocks for June 2005
20 Large/Mid Cap and 20 Small Cap Stocks
- Our Most Dangerous Stocks provide investors with unique investment ideas generated by our forensic analysis of 10K filings for over 3000 companies.
- 4 new stocks make our June Large Cap list as recent price appreciation elevated them to more dangerous ranking than 4 companies on the May list.
- 3 new stocks make our June Small Cap list after price decreases took 3 others off the list.
- Our Most Dangerous Stocks have MISLEADING EARNINGS, which means reported profits are positive and rising while actual profits are negative and falling.
- We identify the most expensive stocks by looking for stocks with the highest expectations for future cash profits versus true, historical profits.
- Figure 1 shows the 10 Most Dangerous Large Cap Stocks for June.
- Figures 2 and 3 provide the full list of 20 Large Cap and 20 Small Cap Dangerous stocks.
- Pages 2-4 explain our Most Dangerous Stocks selection methodology.
Jun 6, 2005
Most Attractive Stocks for June 2005
20 Large/Mid Cap and 20 Small Cap Stocks
- Our Most Attractive Stocks provide investors with unique investment ideas generated by our rigorous analysis of 10K filings for over 3000 companies.
- 5 new stocks make our June Large Cap list because price appreciation in the past few weeks pushed 5 others off the list.
- 6 new stocks make our June Small Cap list because price appreciation pushed 5 others off the list. 1 stock was eliminated as a new 10K revealed a drop in ROIC.
- Our Most Attractive Stocks have RISING ROICs, which means the economics of the business are improving.
- Our Most Attractive stocks are also very cheap, with low expectations for future cash flows and Free-Cash- Flow Yields greater than 5%.
- Figure 1 shows the 10 Most Attractive Large Cap Stocks for June.
- Figures 2 and 3 provide the full list of 20 Large Cap and 20 Small Cap Attractive stocks.
- Pages 2-4 explain our Most Attractive stocks selection methodology.
May 10, 2005
Proof Is In Performance Thru April 2005
Methodology for Measuring the Portfolios' Performances
- This note outlines how we track performance of our Most Attractive and Dangerous stocks portfolios.
- Our April reports represent the beginning of the 2005 Attractive and Dangerous portfolios and will include stocks from reports published through March 2006.
- The 2004 portfolios include stocks from prior reports.
- Cumulative performance of the portfolios assumes Most Attractive and Most Dangerous portfolios are updated monthly when a new report is published.
- Our first Most Attractive (+19%) and Dangerous (+1%) reports from September continue to perform very well versus the S&P 500 (+4%). See Figure 1. Past performance is not indicative of future performance.
- The cumulative performance is strong for Attractive stocks (+10%), but weaker for the Dangerous (+10%) versus the S&P 500 (+4%). See Figure 2.
- The April and May Attractive and Dangerous Stocks reflect the most recent (FYE 2004) corporate financial data for our 3000-company coverage universe.
May 10, 2005
Most Attractive Stocks for May 2005
20 Large/Mid Cap and 20 Small Cap Stocks
- Our Most Attractive Stocks provide investors with unique investment ideas generated by our rigorous analysis of 10K filings for over 3000 companies.
- Our detailed forensic accounting analysis scours the Notes to the Financial Statements to reverse window- dressing of reported earnings and assess true profits.
- We also identify the cheapest stocks by looking for stocks with the lowest expectations for future cash flows and a Free-Cash-Flow Yields greater than 5%.
- Figure 1 shows a subset of our Most Attractive Stocks for May.
- Figures 2 and 3 provide the full list of 20 Large Cap and Small Cap Attractive stocks.
- Pages 2-4 explain our Attractive stock selection methodology.
- Our May Most Attractive Stocks classifications are based on the freshest 10K data available to the market for the entire Russell 3000.
May 10, 2005
Most Dangerous Stocks for May 2005
20 Large/Mid Cap and 20 Small Cap Stocks
- Our Most Dangerous Stocks provide investors with unique investment ideas generated by our rigorous analysis of 10K filings for over 3000 companies.
- Our detailed forensic accounting analysis scours the Notes to the Financial Statements to reverse window-dressing of reported earnings and assess true profits.
- We also identify the most expensive stocks by looking for stocks with the highest expectations for future cash profits versus true, historical profits.
- Figure 1 shows a subset of our Most Dangerous Stocks for May.
- Our May Most Dangerous Stocks are based on the freshest financial data available to the market for the entire Russell 3000.
- Contact us for a copy of the full report and/or details on which companies were added/dropped this month.
- The full report includes a list of and all the details behind our 20 Most Dangerous Large/Mid Cap and Small Cap stocks.
Apr 11, 2005
Most Dangerous Stocks for April 2005
20 Large/Mid Cap and 20 Small Cap Stocks
- Our Most Dangerous Stocks lists change considerably in April after our analysis of over 2500 new 10Ks.
- As shown in Figure 1 below, our Most Dangerous stocks are under-performing the market over the past seven months.
- Our April Most Dangerous Stocks are based on the freshest financial data available to the market for the entire Russell 3000.
- Dangerous Stocks have Misleading Earnings, declining ROICs, and very EXPENSIVE Valuations.
- Please contact us for a copy of the report.
- The full report includes a list of and all the details behind our 20 Most Dangerous Large/Mid Cap and Small Cap stocks.
Apr 11, 2005
Most Attractive Stocks for April 2005
20 Large/Mid Cap and 20 Small Cap Stocks
- The April Most Attractive Stocks list reflects the most recent (FYE 2004) corporate financial data for our 3000-company coverage universe.
- The top 5 stocks in our Large/Mid Cap Stocks List are: ACF, LPX, MWD, MEL and CNF. Each has a Free-Cash-Flow Yield greater than 15%.
- The top 5 stocks in our Small Cap Stocks List are: GFR, OTL, BDY, TRMK, and NAFC. Each has a Free-Cash-Flow Yield greater than 15%.
- Due to the improving profitability of companies formerly not on the list (reflected in 2004 FYE data), a meaningful change in its composition is expected.
- Rigorous back-testing has shown that stocks with a 2-Year average Free-Cash-Flow Yield greater than 10% substantially outperform the market and peers.
- Our 20 Most Attractive Large/Mid Cap Stocks are on page 4, and the 20 Most Attractive Small Cap Stocks are on page 5 of the report.
Mar 20, 2005
What You Don't Know Can Hurt Performance
Why The Notes to the Financial Statements Are Important
- Reported earnings can be misleading because they omit important financial facts found only in the Notes.
- Analyzing the Notes can improve stock picking as shown by the performance of our Most Attractive (+16%) and Most Dangerous (+1%) Stocks vs the S&P (+7%).
- We analyze the Notes to the Financial Statements and use that insight to provide reports for over 3000 stocks.
- This report highlights companies with the most misleading earnings based on adjustments made using data from the Notes to the Financial Statements.
- Analyzing the Notes enables us to calculate economic earnings, potentially a more accurate measure of profits.
- Economic earnings are based primarily on the spread between ROIC and WACC, aka the Economic Profit Margin.
- Empirical evidence shows that Economic Profit Margins explain over 60% of the differences in the market valuation of companies in the S&P 500.
- The results in this report are based on 2003 10Ks. To learn results from 2004 10Ks, please contact us. We have already processed over 800 10Ks filed since March 1st.
Feb 28, 2005
40 Most Dangerous Stocks for March 2005
20 Large/Mid Cap and 20 Small Cap Stocks
- The September Most Dangerous Large/Mid Cap Stocks (+1%) have meaningfully under-performed the S&P 500 (+7%) over the past 6 months. See Figure 1.
- 1 new Large/Mid-Cap stocks make our Most Dangerous list for March. The top 5 are: STN, IVGN, DNA, EDMC, and BA.
- 4 new Small-Cap stocks make our Most Dangerous list.
- The top 5 are: CWTR, JLL, AMHC, COKE, and BONT.
- Despite reporting positive GAAP earnings and GAAP earnings growth, these companies have negative and declining economic earnings.
- Our 20 Most Dangerous Large/Mid Cap Stocks are on page 4, and the 20 Most Dangerous Small Cap Stocks are on page 5.
- A detailed description of how we identify the Most Dangerous Stocks is on pages 2 and 3.
Feb 28, 2005
40 Most Attractive Stocks for March 2005
20 Large/Mid Cap and 20 Small Cap Stocks
- The September Most Attractive Large/Mid Cap Stocks (+16%) have meaningfully out-performed the S&P 500 (+7%) over the past 6 months. See Figure 1.
- 5 new Large/Mid-Cap stocks make our Most Attractive list. The top 5 are: S, HAS, BOH, UST, and OKE. Each has a Free-Cash-Flow Yield greater than 10%.
- 4 new Small-Cap stocks make our Most Attractive list.
- The top 5 are: GTIV, WRNC, OTL, UHAL, and ASPT.
- Each has a Free-Cash-Flow Yield greater than 20%.
- Rigorous back-testing has shown that stocks with a 2-Year average Free-Cash-Flow Yield greater than 10% substantially outperform the market and peers.
- Attractive stocks have strong cash flow and improving Returns on Invested Capital.
- Our 20 Most Attractive Large/Mid Cap Stocks are on page 4, and the 20 Most Attractive Small Cap Stocks are on page 5.
Feb 21, 2005
All Sectors: Risk/Reward Comparisons
A Road Map for Sector Strategies and Portfolio Allocation
- This report provides a summary of our investment Risk/Reward analysis for all ten sectors in the market as well as comparisons to the S&P 500 and Russell 1000.
- Consumer Staples and Energy are the only sectors to achieve an Attractive Risk/Reward rating in our system.
- Information Technology, Consumer Discretionary, Industrials, and Materials sectors have a Dangerous rating.
- All other sectors have a Neutral Risk/Reward ranking, which is in line with the S&P 500 and the Russell 1000.
- Detailed summaries, including an overview of the Most Attractive and Dangerous stocks, for each sector follow.
- Aggregation analyses are based on summing all company models for a given sector or index into an aggregate model.
Feb 18, 2005
Consumer Staples: Attractive Risk/Reward
Assessing Economic Earnings and Market Expectations
- Overall Attractive Risk/Reward means the Sector offers more upside potential than downside risk, in our opinion.
- With a valuation that implies reasonable expectations for future cash flow, rising economic profits suggest the Sector has less downside risk versus upside potential.
- Consumer Staples and Energy are the only sectors to achieve an Attractive Risk/Reward score in our system.
- There are 12 Very Attractive Stocks in the Consumer Staples Sector. The top 2 are UST and HNZ.
- Figure 1 summarizes the five factors that comprise our Attractive score. Figure 1 provides key insights into the profitability and valuation of the Sector.
- Detailed definitions and explanations of each criterion in Figure 1 are provided in the report.
- "Rising EP" means that economic EPS are positive and rising, and the Sectors ROIC ranks in the 2nd Quintile.
- This report represents an aggregation of fifty companies from the Russell 1000 in the Consumer Staples Sector.
Feb 18, 2005
Energy Sector: Attractive Risk/Reward
Assessing Economic Earnings and Market Expectations
- Overall Attractive Risk/Reward means the Sector offers more upside potential than downside risk, in our opinion.
- With a valuation that implies reasonable expectations for future cash flow, rising economic profits suggest the Sector has less downside risk versus upside potential.
- Energy and Consumer Staples are the only sectors to achieve an Attractive Risk/Reward score in our system.
- There are 6 Very Attractive Stocks in the Energy Sector. The top 2 are ASH and KMG.
- Figure 1 summarizes the five factors that comprise our Attractive score. Figure 1 provides key insights into the profitability and valuation of the Sector.
- Detailed definitions and explanations of each criterion in Figure 1 are provided in the report.
- "Rising EP" means that economic EPS are positive and rising, and the Sectors ROIC ranks in the 3 rd Quintile.
- This report represents an aggregation of forty-eight companies from the Russell 1000 in the Energy Sector.
Feb 17, 2005
S&P 500 Neutral Risk/Reward Score
Economic Earnings and Financial Expectations for the Index
- An Overall Neutral Risk/Reward Score means the Index does not have particularly Dangerous or Attractive Profitability or Valuation characteristics.
- Figure 1 summarizes the five factors that comprise our Neutral assessment. Figure 1 provides key insights into the profitability and valuation of the S&P 500.
- In our opinion, the S&P 500 offers neutral downside risk versus upside potential because its valuation implies reasonable future financial performance versus historical.
- "Neutral EP" means that economic earnings are negative but following the same trend as reported GAAP EPS.
- Detailed definitions and explanations of each criterion in Figure 1 are provided in the body of the report.
- This report provides key benchmarks from the S&P 500 for analyzing the unique profitability and valuation metrics offered by New Constructs for over 3000 stocks.
- The analyses in this report are derived from the individual economic earnings and valuation models we have for every company in the index.
Feb 17, 2005
Russell 1000 Neutral Risk/Reward Score
Economic Earnings and Financial Expectations for the Index
- An Overall Neutral Risk/Reward Score means the Index does not have particularly Dangerous or Attractive Profitability or Valuation characteristics.
- Figure 1 summarizes the five factors that comprise our Neutral assessment. Figure 1 provides key insights into the profitability and valuation of the Russell 1000.
- Versus the S&P 500, the valuation of the Russell 1000 is materially higher, implying greater risk. The economic performance and growth of the two indices are inline.
- In our opinion, the Russell 1000 offers neutral downside risk versus upside potential because its valuation implies reasonable future financial performance versus historical.
- "Neutral EP" means that economic earnings are negative but following the same trend as reported GAAP EPS.
- Detailed definitions and explanations of each criterion in Figure 1 are provided in the report.
- This report provides key benchmarks from the Russell 1000 for analyzing the unique profitability and valuation metrics offered by New Constructs for over 3000 stocks.
Feb 3, 2005
Most Attractive Stocks for February 2005
Large/Mid Cap and Small Cap Stocks
- Our 20 Most Attractive Stocks have greater upside potential than downside risk because of: Cheap Valuations, Strong Economics, and Hidden Value.
- 4 new Large/Mid-Cap stocks make our Most Attractive list. The top 5 are: S, HAS, BOH, UST, and PNC. Each has a Free-Cash-Flow Yield greater than 12%.
- 5 new Small-Cap stocks make our Most Attractive list. The top 5 are: GTIV, BDG, WRNC, OTL, and ITLA. Each has a Free-Cash-Flow Yield greater than 20%.
- Rigorous back-testing has shown that stocks with a 2-Year average Free-Cash-Flow Yield greater than 10% substantially outperform the market and peers.
- These stocks have low risk because their valuations reflect low expectations for future economic profit growth while historical economic profit growth is solid.
- Attractive stocks have strong cash flow and improving Returns on Invested Capital.
- Our 20 Most Attractive Stocks list for February featuring Large and Mid-Cap Stocks is on page 4 and the list featuring Small-Cap Stocks is on page 5.
- A detailed description of how we identify the Most Attractive Stocks is on pages 2 and 3.
Feb 3, 2005
Most Dangerous Stocks for February 2005
Large/Mid Cap and Small Cap Stocks
- Our 20 Most Dangerous Stocks have greater downside risk than upside potential because of: Expensive Valuations, Poor Economics, and Misleading Earnings.
- 3 new Large/Mid-Cap stocks make our Most Dangerous list for February. The top 5 are: STN, IVGN. DNA, EDMC, and UVN.
- 3 new Small-Cap stocks make our Most Dangerous list. The top 5 are: CWTR, COKE, JLL, AMHC, and BONT.
- These stocks are risky investments because their valuations imply future financial performance far greater than what the companies have achieved historically.
- Despite reporting positive GAAP earnings and GAAP earnings growth, these companies have negative and declining economic earnings.
- Our economic measures overcome accounting distortions to provide investors with an unadulterated analysis of the underlying economics of businesses.
- Our 20 Most Dangerous Stocks list for February featuring Large and Mid-Cap Stocks is on page 4 and the list featuring Small-Cap Stocks is on page 5.
- A detailed description of how we identify the Most Dangerous Stocks is on pages 2 and 3.
Jan 11, 2005
Most Attractive Large Cap Stocks for January 2005
Large and Mid-Cap (Greater than $2 billion market value)
- Our 20 Most Attractive Stocks have greater upsidepotential that downside risk because of: Cheap Valuations, Strong Economics, and Hidden Value.
- 9 new stocks make our 20 Most Attractive list in JanuaryThe top 5 Most Attractive are: SFI, HAS, BOH, UST and PNC. Each has a Free-Cash-Flow Yield greater than 13%.
- Rigorous back-testing has shown that stocks with a 2-Year average Free-Cash-Flow Yield greater than 10% substantially outperform the market and peers.
- These stocks have low risk because their valuations reflect low expectations for future economic profit growth while historical economic profit growth is solid.
- If accounting measures of profitability can be unreliable, then so can the valuation metrics that rely on them.
- Our 20 Most Attractive Stocks for January are listed on page 4.
- A detailed description of how we identify the Most Attractive Stocks is on pages 2 and 3.
Jan 11, 2005
Most Attractive Small Cap Stocks for January 2005
Small Cap (Less than $2 billion market value)
- Our 20 Most Attractive Stocks have greater upside potential that downside risk because of: Cheap Valuations, Strong Economics, and Hidden Value.
- The top 5 Most Attractive Small-Cap stocks are: GTIV, BDG, OTL, ITLA and SIE. Each has a Free-Cash-Flow Yield greater than 20%.
- Rigorous back-testing has shown that stocks with a 2-Year average Free-Cash-Flow Yield greater than 10% substantially outperform the market and peers.
- These stocks have low risk because their valuations reflect low expectations for future economic profit growth while historical economic profit growth is solid.
- If accounting measures of profitability can be unreliable, then so can the valuation metrics that rely on them.
- Our 20 Most Attractive Stocks for January are listed on page 4.
- A detailed description of how we identify the Most Attractive Stocks is on pages 2 and 3.
Jan 11, 2005
Most Dangerous Small Cap Stocks for January 2005
Small-Cap (Less than $2 billion market value)
- Our 20 Most Dangerous Stocks have greater downside risk than upside potential because of: Expensive Valuations, Poor Economics, and Misleading Earnings.
- The top 5 Most Dangerous small-cap stocks are: COKE, AMHC, ANSI, JLL, and BONT.
- These stocks are risky investments because their valuations imply future financial performance far greater than what the companies have achieved historically.
- Despite reporting positive GAAP earnings and GAAP earnings growth, these companies have negative and declining economic earnings.
- If accounting measures of profitability can be unreliable, then so can the valuation metrics that rely on them.
- Our economic measures overcome accounting distortions to provide investors with an unadulterated analysis of the underlying economics of businesses.
- Our Top 20 Most Dangerous Stocks for January are listed on page 4.
- A detailed description of how we identify the Most Dangerous Stocks is on pages 2 and 3.
Jan 11, 2005
Most Dangerous Large Cap Stocks for January 2005
Large and Mid-Cap (Greater than $2 billion market value)
- Our 20 Most Dangerous Stocks have greater downside risk than upside potential because of: Expensive Valuations, Poor Economics, and Misleading Earnings.
- 3 new stocks make our 20 Most Dangerous list for January. The top 5 Most Dangerous stocks are: STN, IVGN, DNA, UVN, and EDMC.
- These stocks are risky investments because their valuations imply future financial performance far greaterthan what the companies have achieved historically.
- Despite reporting positive GAAP earnings and GAAP earnings growth, these companies have negative and declining economic earnings.
- If accounting measures of profitability can be unreliable, then so can the valuation metrics that rely on them.
- Our economic measures overcome accounting distortions to provide investors with an unadulterated analysis of the underlying economics of businesses.
- Our Top 20 Most Dangerous Stocks for January are listed on page 4.
- A detailed description of how we identify the Most Dangerous Stocks is on pages 2 and 3.
Dec 3, 2004
December 2004's 20 Most Attractive Stocks
Stocks with Low Risk and Strong Upside Potential
- Our 20 Most Attractive Stocks have: Cheap Valuations, Strong Economics, and Hidden Value.
- 11 new stocks make our 20 Most Attractive list in December as we introduce a new criterion: 2-Year Average Free-Cash-Flow Yield.
- We suggest readers leverage our 'Cash Is King.....When Measured Accurately' report to read how our model portfolio based on FCF Yields < 10% strongly outperforms key benchmarks.
- Rigorous back-testing has shown that stocks with a 2-Year average Free-Cash-Flow Yield greater than 10% substantially outperform the market and peers.
- Top 5 Most Attractive are: BOH, CBSS, CRE, FCX, and FITB. Each has a Free-Cash-Flow Yield greater than 15%.
- These stocks have low risk because their valuations reflect low expectations for future economic profit growth while historical economic profit growth is solid.
- If accounting measures of profitability can be unreliable, then so can the valuation metrics that rely on them.
- Our 20 Most Attractive Stocks for December are listed on page 4.
- A detailed description of how we identify the Most Attractive Stocks is on pages 2 and 3.
Dec 3, 2004
December 2004's 20 Most Dangerous Stocks
Stocks with the Greatest Risk of Downside
- Our 20 Most Dangerous Stocks have: Expensive Valuations, Poor Economics, and Misleading Earnings.
- 6 new stocks make our 20 Most Dangerous list for November. The top 5 Most Dangerous stocks are: STN, DNA, UVN, EDMC, and BA.
- We suggest readers leverage our 'Setting the Benchmarks for the S&P 500' report to compare the metrics for the individual companies in this report to the benchmark metrics in the S&P 500 report.
- These stocks are risky investments because their valuations imply future financial performance far greater than what the companies have achieved historically.
- Despite reporting positive GAAP earnings and GAAP earnings growth, these companies have negative and declining economic earnings.
- If accounting measures of profitability can be unreliable, then so can the valuation metrics that rely on them.
- Our economic measures overcome accounting distortions to provide investors with an unadulterated analysis of the underlying economics of businesses.
- Our Top 20 Most Dangerous Stocks for November are listed on page 4.
Nov 30, 2004
Cash Is King ... When Measured Accurately
Back-testing Shows Our Free-Cash-Flow-Yield Outperforms
- Rigorous back-testing shows that companies with a FreeCash-Flow Yield greater than 10% have consistently outperformed the S&P 500 and peers by a wide margin.
- This report shows better data may improve stock picking.
- Over 5 years, our Model Portfolio (+215%) substantially outperformed the SP 500 (-27%). After removing survivor bias, our Model Portfolio (+96%) still bested the market.
- We believe our Model Portfolios superior results are driven by our more accurate measure of Free Cash Flow (FCF), which leverages data from Notes to the Financials.
- Our back-testing process is very simple. We buy stocks with a Free-Cash-Flow Yield averaging at least 10% for a minimum of 2 years. We hold these stocks for one year.
- Figures 1 and 2 compare the rebalanced performance of our Model Portfolio versus the S&P 500 over 5 years.
- Figure 4 shows the FCF and the FCF Yield for the S&P 500 over the past 5 years. Figure 6 shows the Russell 1000 companies with a 5-year average FCF Yield greater than 10%.
Nov 9, 2004
November 2004's 20 Most Dangerous Stocks
Stocks with the Greatest Risk of Downside
- Our 20 Most Dangerous Stocks have: Expensive Valuations, Poor Economics, and Misleading Earnings.
- 6 new stocks make our 20 Most Dangerous list for November. The top 5 Most Dangerous stocks are: STN, DNA, UVN, EDMC, and BA.
- We suggest readers leverage our 'Setting the Benchmarks for the S&P 500' report to compare the metrics for the individual companies in this report to the benchmark metrics in the S&P 500 report.
- These stocks are risky investments because their valuations imply future financial performance far greater than what the companies have achieved historically.
- Despite reporting positive GAAP earnings and GAAP earnings growth, these companies have negative and declining economic earnings.
- If accounting measures of profitability can be unreliable, then so can the valuation metrics that rely on them.
- Our economic measures overcome accounting distortions to provide investors with an unadulterated analysis of the underlying economics of businesses.
- Our Top 20 Most Dangerous Stocks for November are listed on page 4.
Nov 9, 2004
November 2004's 20 Most Attractive Stocks
Stocks with Low Risk and Strong Upside Potential
- Our 20 Most Attractive Stocks have: Cheap Valuations, Strong Economics, and Hidden Value.
- 14 new stocks make our 20 Most Attractive list in November as we introduce a new criterion: Free-Cash-Flow Yield.
- Rigorous back-testing of our Free-Cash-Flow Yield metric has shown that stocks with a yield greater than 10% substantially outperform the market and peers.
- Top 5 Most Attractive are: LPX, MVL, TMK, CRE, and MI. Each has a Free-Cash-Flow Yield greater than 10%.
- These stocks have low risk because their valuations reflect low expectations for future economic profit growth while historical economic profit growth is solid.
- If accounting measures of profitability can be unreliable, then so can the valuation metrics that rely on them.
- Our 20 Most Attractive Stocks for November are listed on page 4 of the report available from the link below.
- A detailed description of how we identify the Most Attractive Stocks is on pages 2 and 3 of the report.
Nov 8, 2004
Setting the Benchmarks for the S&P 500
Analyzing the Economic Earnings and Future Cash Flow Expectations for the Index
- This report provides benchmarks from the S&P 500 for analyzing the unique profitability and valuation metrics offered by New Constructs for over 3000 stocks.
- Over the past five years, economic earnings have been negative while reported earnings have been positive for the index. In the last fiscal year, both have trended up.
- We believe the S&P 500 looks fairly valued when comparing the future performance expectations embedded in its price to historical performance.
- Trading at 1,128 means the market expects the S&P 500, in aggregate, to grow revenues annually at 7% and achieve an economic profit margin of 9% for the next 24 years.
- The analyses in this report are derived from the individual economic earnings and valuation models we have for every company in the index.
- New Constructs aims to rectify all accounting distortions in GAAP financial statements to provide investors with a truer measure of the economic earnings of companies.
- The results in this report reflect recent updates to our assumptions for the Equity Risk Premium and Risk-Free Rate used for calculating the cost of equity capital.
Oct 5, 2004
10 Most Attractive Health Care Stocks
Stocks with Low Risk and Strong Upside Potential
- Our 10 Most Attractive Stocks in the Health Care Sector have: Cheap Valuations, Strong Economics, and HiddenValue.
- The top 5 Most Attractive are: UNH, PHS, WYE, RCI, and JNJ.
- These stocks have low risk because their valuations reflect low expectations for future economic profit growth while historical economic profit growth is solid.
- The Price-to-Earnings ratios of these stocks are relatively high and, we believe, are misleading.
- If accounting measures of profitability can be unreliable, then so can the valuation metrics that rely on them.
- Our 10 Most Attractive Stocks in Health Care are listed on page 4 of the report.
- A detailed description of how we identify the Most Attractive Stocks is on pages 2 and 3 of the report.
Oct 5, 2004
10 Most Dangerous Stocks in Health Care
Stocks with the Greatest Risk of Downside
- Our 10 Most Dangerous Stocks in the Health Care Sector have: Expensive Valuations, Poor Economics, and Misleading Earnings.
- The top 5 Most Dangerous are: DNA, VAR, CHIR, FSH and PPDI.
- These stocks are risky investments because their valuations imply future financial performance far greater than what the companies have achieved historically.
- Despite reporting positive GAAP earnings, these companies have negative economic earnings.
- If accounting measures of profitability can be unreliable, then so can the valuation metrics that rely on them.
- Our economic measures overcome accounting distortions to provide investors with an unadulterated analysis of the underlying economics of businesses.
- Our 10 Most Dangerous Stocks in the Health Care Sector are listed on page 4 of the report.
- A detailed description of how we identify the Most Dangerous Stocks is on pages 2 and 3 of the report.
Oct 5, 2004
10 Most Dangerous Technology Stocks
Stocks with the Greatest Risk of Downside
- Our 10 Most Dangerous Stocks in the Information Technology Sector have: Expensive Valuations, Poor Economics, and Misleading Earnings.
- The top 5 Most Dangerous are: MFE, MCHP, HRS, PSFT, and NCR.
- These stocks are risky investments because their valuations imply future financial performance far greater than what the companies have achieved historically.
- Despite reporting positive GAAP earnings, these companies have negative and declining economic earnings.
- If accounting measures of profitability can be unreliable, then so can the valuation metrics that rely on them.
- Our economic measures overcome accounting distortions to provide investors with an unadulterated analysis of the underlying economics of businesses.
- Our 10 Most Dangerous Stocks in the Information Technology Sector are listed on page 4 of this report.
- A detailed description of how we identify the Most Dangerous Stocks is on pages 2 and 3 of this report.
Oct 4, 2004
October 2004's 20 Most Dangerous Stocks
Stocks with the Greatest Risk of Downside
- Our 20 Most Dangerous Stocks have: Expensive Valuations, Poor Economics, and Misleading Earnings.
- 5 new stocks make our 20 Most Dangerous list in October. The top 5 are: BA, AXP, XRX, CPN and UVN.
- These stocks are risky investments because their valuations imply future financial performance far greater than what the companies have achieved historically.
- Despite reporting positive GAAP earnings and GAAP earnings growth, these companies have negative and declining economic earnings.
- If accounting measures of profitability can be unreliable, then so can the valuation metrics that rely on them.
- Our economic measures overcome accounting distortions to provide investors with an unadulterated analysis of the underlying economics of businesses.
- Our Top 20 Most Dangerous Stocks for October are listed on page 4.
- A detailed description of how we identify the Most Dangerous Stocks is on pages 2 and 3 of the report.
Oct 4, 2004
October 2004's 20 Most Attractive Stocks
Stocks with Low Risk and Strong Upside Potential
- Our 20 Most Attractive Stocks have: Cheap Valuations, Strong Economics, and Hidden Value.
- 3 new stocks make our 20 Most Attractive list in October. The top 5 are: ECL, GNTX, GGP, UNH, PEP.
- These stocks have low risk because their valuations reflect low expectations for future economic profit growth while historical economic profit growth is solid.
- These stocks have hidden value because their economic EPS growth exceeds their GAAP EPS growth.
- The Price-to-Earnings ratios of these stocks are relatively high and, we believe, are misleading.
- If accounting measures of profitability can be unreliable, then so can the valuation metrics that rely on them.
- Our 20 Most Attractive Stocks for October are listed on page 4 of the report available from the link below.
- A detailed description of how we identify the Most Attractive Stocks is on pages 2 and 3 of the report.
Sep 10, 2004
September 2004's 20 Most Dangerous Stocks
Stocks with the Greatest Risk of Downside
- Our 20 Most Dangerous Stocks have: Poor Economics, Expensive Valuations, and Misleading Earnings.
- 10 new stocks make our 20 Most Dangerous list in September. 4 of the top 5 are replaced as well.
- These stocks are risky investments because their valuations imply future financial performance far greater than what the companies have achieved historically.
- Despite reporting positive GAAP earnings and GAAP earnings growth, these companies have negative and declining economic earnings.
- If accounting measures of profitability can be unreliable, then so can the valuation metrics that rely on them.
- Our economic measures overcome accounting distortions to provide investors with an unadulterated analysis of the underlying economics of businesses.
- Our Top 20 Most Dangerous Stocks for September are listed on page 4.
- A detailed description of how we identify the Most Dangerous Stocks is on pages 2 and 3 of the report.
Sep 10, 2004
September 2004's 20 Most Attractive Stocks
Stocks with Low Risk and Strong Upside Potential
- Our 20 Most Attractive Stocks have: Cheap Valuations, Strong Economics, and Hidden Value.
- 7 new stocks make our 20 Most Attractive list in September. All of the top 5 are new. They are HB, WL, UST, MAY, and CRE.
- These stocks have low risk because their valuations reflect low expectations for future economic profit growth while historical economic profit growth is solid.
- These stocks have hidden value because their economic EPS growth exceeds their GAAP EPS growth.
- The Price-to-Earnings ratios of these stocks are relatively high and, we believe, are misleading.
- If accounting measures of profitability can be unreliable, then so can the valuation metrics that rely on them.
- Our 20 Most Attractive Stocks for September are listed on page 4 of the report available from the link below.
- A detailed description of how we identify the Most Attractive Stocks is on pages 2 and 3 of the report.
Aug 20, 2004
Will They All Cross the Chasm?
Google, eBay, and Yahoo Share Lofty Valuations
- If GOOG, YHOO and EBAY achieve the revenue growth implied by their valuations, their combined revenues would represent nearly 5% of GDP.
- It seems that the market is rewarding GOOG, YHOO and EBAY with expectations for market dominance and the strong economic profits that could result.
- There is a chasm between the economic futures implied by their stock prices and their economic histories.
- To justify $100 per share, GOOG must grow revenues at 30% and achieve a 25% economic profit margin for 15 years.
- To justify $28 per share, YHOO must grow revenues at 30% and achieve a negative 2.8% economic profit margin for 22 years.
- To justify $80 per share, EBAY must grow revenues at 30% and achieve a 7.6% economic profit margin for 21 years.
- For each of these companies, reported profits meaningfully overstate economic profits.
- Along with aggressive revenue growth expectations, GOOG, YHOO and EBAYs valuations imply formidable improvement in economic earnings.
Aug 4, 2004
August 2004's 20 Most Attractive Stocks
Stocks with Low Risk and Strong Upside Potential
- Our 20 Most Attractive Stocks have: (1) Cheap Valuations, (2) Strong Economics, and (3) Hidden Value.
- These stocks have low risk because their valuations reflect low expectations for future economic profit growth while historical profit growth is strong.
- These stocks have hidden value because their economic EPS growth exceeds their GAAP EPS growth.
- Our 20 Most Attractive Stocks are listed on page 4 in this report.
- A detailed description of how we identify the Most Attractive Stocks is on pages 2 and 3 in this report.
Aug 4, 2004
Valuing Google
Are Investors Getting a Fair Price?
- With an expected IPO value in the $29-36 billion range,Google offers investors an expensive and risky investment.
- Relative to peers, such as Yahoo and eBay, Google's valuation seems reasonable.
- The report details the future financial performance requirements reflected by three potential market values:(1) $25 Billion, (2) $35 Billion and (3) $45 Billion.
- We do not predict the future value of Google. Instead,we provide investors with critical information needed to assess the accuracy of the markets valuation.
- Google's reported profits overstate its economic profits.
- Accounting-based metrics underestimate the aggressivemarket expectations imbedded in Googles valuation.
Jul 27, 2004
August 2004's 20 Most Dangerous Stocks
Stocks with the Greatest Risk of Downside
- Our Top 20 Most Dangerous Stocks represent those companies with the worst economics and most expensive valuations.
- These stocks are risky investments because their valuations imply future financial performance far greater than what the companies have achieved historically.
- Even after recent declines in most major indices, there are many dangerous stocks in the market.
- Despite reporting positive GAAP earnings and GAAP earnings growth, these companies have negative and declining economic earnings.
- The key accounting issues that cause GAAP profits to differ from a company's underlying economic earnings are listed in Figure 1 on page 1 of the report.
- If accounting measures of profitability can be unreliable, then so can the valuation metrics that rely on them.
- Our economic measures overcome accounting distortions to help investors make more informed decisions.
- Our Top 20 Most Dangerous Stocks are listed on page 4 of the report.
- A detailed description of how we identify the Most Dangerous Stocks is on page 3 of the report.
Jul 22, 2004
Option Costs: Should They Be Reported?
No Matter the Disclosure Rules, Options Impact Shareholder Value
- Undisclosed stock option expenses erase 10% of the earnings of the S&P500 in 2003.
- The earnings of many companies would not be affected by a disclosure rule change. Many other companies, especially technology, would be substantially impacted.
- This report provides investors with a list of the companies whose earnings would be most affected if all stock option expenses were disclosed.
- Regardless of the politics of disclosure rules, many investors believe stock options impact the profitability and value of companies.
- A list of the 20 companies with the highest stock option expense in the S&P500 is on page 2.
Jul 9, 2004
JP Morgan Chase: Weak Competitive Position
Weak Competitive Position Results in Low Market Expectations
- Market expectations for the future financial performance of the company are low, consistent with a weak competitive position relative to peers.
- Despite positive GAAP earnings, JPM's economic profits have suffered over the past 5 years.
- Acquisitions and falling profits have depressed ROIC.
- Improving economic profit margins can result in substantial upside for shareholders.
- Capital efficiency offers more opportunity for improvement than operating efficiency.
Jul 2, 2004
JP Morgan Chase: Low ROIC
Low ROIC Results in Weak Competitive Position
- This report provides a summary of our investment Risk/Reward analysis for all ten sectors in the market as well as comparisons to the S&P 500 and Russell 1000.
- JPM has among the lowest Returns on Invested Capital (ROIC) in its peer group.
- An Overall Neutral Risk/Reward Score means the Index does not have particularly Dangerous or Attractive Profitability or Valuation characteristics.
- Key to improving its competitive position and valuation is raising its ROIC.
- Both Operating and Capital Efficiency drive ROIC. Assessing the impact of each on the profits of the company can offer incremental analytical insight.
- JPM's capital efficiency is lower than its peers, while profit margins are competitive.
- The relationship between economic performance and market valuation is strong.
