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.
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.
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.
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.
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.
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.
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.
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.
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.
Both VMI and CMRE might be classified as “safe” stocks that investors would turn to when the market is volatile as it has been recently. However, it’s important to distinguish a stock that is really safe from one that just looks safe.