Where do regulators go to make money? Wall Street

“Close the revolving door between the S.E.C. and Wall Street. At every turn we keep coming back to an enormous barrier to reform: Wall Street’s political influence. Its influence over the S.E.C. is further compromised by its ability to enrich the people who work for it. Realistically, there is only so much that can be done to fix the problem, but one measure is obvious: forbid regulators, for some meaningful amount of time after they have left the S.E.C., from accepting high-paying jobs with Wall Street firms.”

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A new (and currently legal) form of insider trading?

This report shows how the big Wall Street banks and large hedge funds exploit their access to more information to front-run unsuspecting investors.

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NYSE – Why it’s on the Most Dangerous List

There are two primary reasons a stock gets on our Most Dangerous List:

1. Misleading earnings: reported GAAP earnings are positive and rising while economic earnings are negative and declining
2. Expensive valuation: future cash flow expectations embedded in the current price are unusually high especially compared to historical performance.

Free copy of our report on NYX is in the Free Archive on www.newconstructs.com. Or just click here: NYX Company Valuation Report.

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Our Research aims to help clients, not sell stock

Unlike the typical research firm, New Constructs aims to help our customers not exploit them. New Constructs only makes money by selling reports, no investment banking or trading fees pollute our research.

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Practicing what I preach

To see how I apply my analytical techniques, look no farther than the New Constructs website. Indeed, we have a large and generous Free Archive of research reports that show you exactly what we do and how we do it. We are not afraid to be transparent because we have nothing to hide.

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Even if you think my analytical methods are bunk, you will still appreciate the performance of New Constructs stock picking. To see how we’ve done…

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Greenspan and Larry Summers quashed warnings about derivatives in the 1990s

Watch this video. “The Warning”. The description of the video from the website: “In the midst of the 1990s bull market, one lone regulator warned about the derivatives dangers — and overnight became the enemy of some of the most powerful people in Washington…”

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How to Make Money Picking Stocks

The best strategy for making money in stocks is “buy low expectations & sell high expectations.” Sounds easy — but if it was easy, everyone would do it, right?

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Investment Strategy 101


The key to successful investing is maximizing upside potential and minimizing downside potential for every investment decision.

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Valuation 101

There is only one true way to value stocks (or any financial assets) – as has been stated by the top investing minds over the ages:

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My Trip To DC

In June 2009, I went to DC to meet with Senator Corker, the SEC, the Senate Banking Committee, the FDIC, the Congressional Oversight Panel and the Public Company Accounting And Oversight Board.

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Big Brother Is…

Big Brother (in the Orson Wells’ sense) is not our government, but the people who control our government.

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Finance 101

Finance is the process for making accounting data useful.

Per Accounting 101: accounting data by itself is not useful. Think of accounting data as the words used in the language of Finance. Just as with any language, words can be arranged to convey almost any meaning.

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Accounting 101

Accounting data is NOT reliable for making investment decisions because:

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Important Disclosures

New Constructs is affiliated with the general partner of a hedge fund. At any particular time, New Constructs’ and this blog’s research recommendations may not coincide with the hedge fund’s holdings.

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Why I Created This Blog

This blog will show how to:

1. Uncover the unadulterated facts about corporate profitability and valuation.
2. Avoid falling prey to misinformation about stocks that inundates the airwaves, papers and most research channels.
3. Develop intelligent investment strategies.

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