New Stocks on Exec Comp & ROIC Model Portfolio: August 2017
The best performing stock in the portfolio was NVR Inc. (NVR), which was up 9%. Get a free look at a new stock on August’s Model Portfolio.
See Us On CNBC Discussing Salesforce @ 4ET Today
Tune into CNBC on Tuesday August 22 at 4 pm EST to learn more. New Constructs CEO, David Trainer, will discuss salesforce’s business and its current valuation.
TrueCar Can’t Serve Two Masters
TrueCar shares the same fatal flaw that sunk Angie’s List. As a middleman, it has to appeal to consumers while remaining valuable to its actual customers, car dealers. In trying to balance the needs of these two opposing sides, TrueCar is conflicted and struggles to provide value to either.
Solar Stock Faceoff for The Solar Eclipse
With investors’ eyes turned towards the sun today, which of these solar stocks is the best bet to make your portfolio shine?
ICYMI: Chicken Producer Long Idea, Solar Stock Faceoff, An Overvalued Retailer, & Closing Successful Danger Zone Picks
Here’s what happened at New Constructs this past week.
Fatten Your Nest Egg with Sanderson Farms
The stock’s of chicken producers have been on a tear this year. We selected Sanderson Farms (SAFM) and Pilgrim’s Pride (PPC) as Long Ideas in mid-2015, but we are honing in our focus on SAFM as the best way to play growing chicken demand.
Podcast: Why Etsy Is In The Danger Zone
CEO David Trainer sat down with Chuck Jaffe of Money Life and to talk about our Danger Zone pick this past week: Etsy Inc. (ESTY).
Exec Comp Aligned With ROIC Model Portfolio: August 2017
Platinum Members and higher can access August’s Executive Compensation Aligned With ROIC Model Portfolio as of Wednesday, August 16.
Too Much Market Value for Too Small a Market
This niche business generates plenty of “adjusted EBITDA,” but no real profits. It also has too much market value for too small a market, especially in light of its deteriorating competitive position. Absent a textbook case of “stupid money risk,” (i.e. a grossly overpriced acquisition) the risk/reward does not look good for equity investors.
Closing Danger Zone Pick: VirnetX Holding Corp (VHC)
While business prospects still hinge upon patent infringement rulings, the significantly lower valuation no longer presents the unbalanced risk/reward it once did.
Closing Danger Zone Pick: Verifone Systems (PAY)
While fundamental issues remain, such as a bottom-quintile ROIC and a challenging competitive landscape, we are inclined to take profits.
Closing Danger Zone Pick: Shutterstock (SSTK)
The significant reduction in stock price and embedded market expectations diminishes the downside risk and we are closing the position.
Closing Danger Zone Pick: Celadon Group (CGI)
The significant reduction in stock price and embedded market expectations diminishes the downside risk and we are closing the position.
ICYMI: New Long Idea, Disney Bombs Netflix, A Solution for the Duty of Care, CNBC Interview & New Stocks on Model Portfolios
Here’s what happened at New Constructs this past week.
Disney Dumps Netflix, And So Should Investors
Investors should capitalize on the opportunity provided by Disney’s streaming service announcement and the market’s overreaction to earnings. Buy into a great company at an attractive valuation (Disney) and sell an overvalued company with holes in its business model (Netflix).
An Industry Leader In A Rapidly Growing Market
We previously highlighted the semiconductor equipment sector as a “pick and shovel” play to benefit from trends such as artificial intelligence, autonomous driving, and the Internet of Things. Today we are digging deeper into one of those stocks.
Podcast: Why Acadia Healthcare Is In The Danger Zone
CEO David Trainer sat down with Chuck Jaffe of Money Life and to talk about our Danger Zone pick this past week: Acadia Healthcare (ACHC).
Podcast: Why Investors Ignoring This Industrials Stock Are In The Danger Zone
CEO David Trainer sat down with Chuck Jaffe of Money Life to talk about an Industrials stock that investors should not overlook.
See Us On CNBC Discussing Snap @ 4:10ET Today
Tune into CNBC on Thursday, August 10 at 4:10 pm EST. New Constructs CEO, David Trainer, will discuss Snap’s business and its current valuation.
A Practical Solution To Fulfill The Duty Of Care
Without the Duty of Care, the Duty of Loyalty is nearly worthless. An advisor that tries to act in your best interest, but doesn’t have the skill or diligence to do so can cause just as much harm as a conflicted advisor.