This Footwear Stock is Back on Sale

It can be scary to buy a stock that’s just dropped 30%, but if the long-term trend in fundamentals remains intact, an unwarranted drop in valuation can lead to a great buying opportunity.

Continue Reading →

Bigger Is Not Always Better

Overpriced acquisitions to grow the topline have destroyed shareholder value and exposed this company to significant data security and privacy risks. These issues, combined with an overvalued stock raise red flags.

Continue Reading →

Can the Market Grow Into its Valuation?

The good news is that the market’s valuation remains well below its pre-2008 levels. Barring any major negative news (e.g. an oil crisis), we expect to see a relatively flat market for the rest of 2018 as company fundamentals catch up to the gains of last year.

Continue Reading →

Pre-IPO Coverage: AXA Equitable Holdings (EQH)

Despite its size, EQH has attracted less attention than similarly sized IPO’s. This report aims to help investors sort through the complex financial filings to understand the fundamentals and valuation of this IPO.

Continue Reading →

The “Value” Stock That Traditional Value Investors Can’t See

This stock looks expensive based on traditional metrics, but a look at the true cash flows of the business shows otherwise.

Continue Reading →

Open Letter to the SEC: Fiduciary Duties Need to Extend to Research

The SEC needs to offer a more concrete interpretation of the Duty of Care, one that focuses on the research upon which investment recommendations are based.  

Continue Reading →

Don’t Believe the Hype About this “AI Powered” ETF

This ETF’s label capitalizes on the growing interest in Artificial Intelligence by a portfolio selected by AI, but its holdings show little differentiation from the market, and its methodology is a black box.

Continue Reading →

A Reminder to the SEC: Disclosure Is Not Enough

As the SEC gets set to propose its advice standard on April 18, we believe it is important to note that disclosure alone is not enough to protect investors.

Continue Reading →

AI Can Lead this Bank to Further Profit Growth

Investments in artificial intelligence are already improving profitability and efficiency, which when combined with a cheap valuation make this bank this week’s Long Idea.

Continue Reading →

Danger Zone: Fund Managers That Don’t Analyze Details in 10-Ks

Investors deserve more diligence from fund managers, so we are putting those that don’t read SEC filings or lack the technology needed to thoroughly analyze those filings in the Danger Zone.

Continue Reading →

Position Close Update: Oclaro (OCLR)

LITE made an acquisition offer on March 12 and enough time has elapsed that a bidding war no longer seems likely, so we are closing our OCLR position.

Continue Reading →

ISS Buying EVA Dimensions Signals More Focus on Fundamental Research

Sophisticated investors want metrics that go deeper than reported earnings so they can get a truer picture of cash flows and hold companies accountable for capital allocation.

Continue Reading →

How Much Should Investors Pay for Spotify?

To help investors sort through the confusion, we present three different proposed valuations for Spotify based on three different scenarios of growth and profitability.

Continue Reading →

Danger Zone: “Value Stocks” That Are Actually Expensive

This week, we highlight three companies that look cheap based on P/E ratios but actually have significant growth expectations implied by their valuations.

Continue Reading →

Filing Season Finds: Week of March 19-25

Last week, analysts parsed 172 10-K filings and collected 20,140 data points. In total, they made 3,110 forensic accounting adjustments with a dollar value of $1.4 trillion. Senior Analyst Lindsay Bohannon identified a few key items in The Gap’s 2018 10-K.

Continue Reading →

Position Close Update: Skechers USA (SKX)

The fundamentals no longer look strong enough for us to continue recommending the stock as one of our top long ideas, so we are closing this position with respectable gains and outperformance.

Continue Reading →

Filing Season Finds: Week of March 12-17

Last week, analysts parsed 243 10-K filings and collected 29,109 data points. In total, they made 4,701 forensic accounting adjustments with a dollar value of $1.3 trillion. Analyst Jacob McDonough found a significant red flag in the footnotes of Centrus Energy’s (LEU) 2017 10-K.

Continue Reading →

Doomsday Valuation Makes this Stock a Buy

Overblown concerns about balance sheet liabilities, macroeconomic headwinds, and technological disruption have the market projecting the company’s cash flows will be permanently cut in half, a scenario which seems unlikely.

Continue Reading →

Filing Season Finds: Week of March 5-10

Last week, analysts parsed 409 10-K filings and collected 54,383 data points. In total, they made 8,989 forensic accounting adjustments with a dollar value of $1.3 trillion. Analyst Eric Roll identified two significant red flags in PacWest Bancorp’s (PACW) 2017 10-K.

Continue Reading →

No Light at the End of the Tunnel for This Stock

This firm’s shrinking cash flows can’t cover its debt burden, its accounting is confusing and possibly unreliable, its industry faces technological disruption, and its valuation assumes implausibly high profit growth.

Continue Reading →

Page 1 of 8