10 Wonderful Companies That Are Bad Stocks
Sometimes, a great company can actually be a risky stock when it gets significantly overvalued.
David Trainer, Founder & CEO
David Trainer, Founder & CEO
Danger Zone: United States Cellular (USM)
USM's profits, margins, and return on invested capital are all in decline, and its revenues have been stagnant for a number of years. In addition, reported earnings per share conceal the company’s growing profit losses.
David Trainer, Founder & CEO
New Stocks Make Most Attractive/Dangerous Lists For June
Our Most Attractive and Most Dangerous stocks for June were made available to the public at midnight on Wednesday.
David Trainer, Founder & CEO
PetSmart: Your Portfolio’s Best Friend (PETM)
PETM missed on revenue in 1Q14, and lowered its sales forecasts for FY14, and as a result, the stock fell nearly 8%. However, the specialty retailer has a strong history of profit growth and is now trading at its lowest valuation in years.
David Trainer, Founder & CEO
Danger Zone: MercadoLibre (MELI)
Latin American e-commerce is a high growth area, but that does not make MELI a good investment. Even if it staves off the competition and keeps growing rapidly, the stock is already priced for significant growth.
David Trainer, Founder & CEO
Amazon’s New Smartphone Spells Trouble for Apple (AAPL)
A high quality smartphone from Amazon that undercuts higher-priced competitors could mean more serious trouble for Apple’s iPhone and the company's declining profit margins.
David Trainer, Founder & CEO
June’s Most DANGEROUS Stocks Available to Subscribers Today
Paying customers can access June's 40 Most Dangerous Stocks as of Wednesday, June 4.
David Trainer, Founder & CEO
June’s Most Attractive Stocks Available to Subscribers Today
Paying customers can access June's 40 Most Attractive Stocks as of Wednesday, June 4.
David Trainer, Founder & CEO
Danger Zone: Olin Corporation (OLN)
OLN is a classic value trap. With a P/E of 13, the stock may appear cheap, but a closer look reveals earnings quality issues and major growth is still priced into its valuation.
David Trainer, Founder & CEO
Analyst Notes: Definitions
The “Analyst Notes” column on the stock screener at newconstructs.com features insights into corporate events or disclosures that cause us to question the validity of a company’s financial reporting or the efficiency of the market for its stock.
David Trainer, Founder & CEO
FASB Changes Standard For Revenue Recognition
The Financial Accounting Standards Board (FASB) issued a new set of standards for revenue recognition along with the International Accounting Standards Board (IASB) on Wednesday.
David Trainer, Founder & CEO
Why Europe is No Magic Bullet For Netflix
The true sign of a bubble stock is when investors see only opportunity without factoring in any of the risk, which is exactly what’s happened with NFLX. With this European expansion, bulls are dreaming of revenue growth and a global streaming giant without factoring in the significant hurdles NFLX faces and the high costs it will incur.
David Trainer, Founder & CEO
The Bidding War For Hillshire Is Bad For Investors
Incentive plans that encourage executives to chase short-term growth at the expense of healthy capital allocation make this sort of irrational behavior not just possible, but inevitable.
David Trainer, Founder & CEO
How To Avoid Wall Street Groupthink
Doing your own fundamental analysis can be hard work, but it is worth it. Listening to the buzz on Wall Street only tells you what has outperformed, doing your own research can tell you what will outperform.
David Trainer, Founder & CEO
Buy Deere and Watch it Run
If you bought CAT when we recommended it last April, you’ve earned a 25% return and outperformed the market. DE today presents many of the same opportunities that CAT did last April.
David Trainer, Founder & CEO
Winners and Losers In AT&T’s Acquisition of DirecTV
After a few weeks of rumors, on Sunday AT&T (T) confirmed its $95/share offer for DirecTV (DTV). The deal will be part stock and part cash, and is expected to close within 12 months if the deal meets regulatory approval.
David Trainer, Founder & CEO
Danger Zone: DreamWorks Animation (DWA)
Currently, everything is going against this stock. Momentum is negative, the valuation is still high, and profits are on a long-term downward trend.
David Trainer, Founder & CEO
How To Avoid the Worst Style Mutual Funds
Picking from the multitude of style mutual funds is a daunting task.
David Trainer, Founder & CEO
Ford (F) is Hitting on All Cylinders
As long as Ford’s strong profit growth and market share gains continue, this stock has a lot of upside.
David Trainer, Founder & CEO
Danger Zone: Rydex Funds
At best, Rydex offers a more expensive, lower quality portfolio than what investors can get from other ETFs or mutual funds. At worst, Rydex poses significant risk of diminishing investors’ wealth.
David Trainer, Founder & CEO