December 17, 20150Comments

Operating Lease Obligation Discount Rate Update

We have recently updated our treatment of Operating Lease Obligations to use a fixed rate as the discount rate for capitalizing the lease obligations and calculating the implied interest for all companies over all history.

by Kyle Guske II, Senior Investment Analyst, MBA

December 16, 20150Comments

The Market Values High ROIC Companies

Last month, Fortune released its list of the top 50 businesspeople of the year. The recognition these CEO’s are receiving shows that the market cares about ROIC, even if many investors aren’t explicitly talking about it.

by Sam McBride

December 14, 20151Comments

Danger Zone: Qlik Technologies (QLIK)

Despite deteriorating margins, lack of competitive advantage, and a sky-high valuation, Qlik Technologies (QLIK: $31/share) is up nearly 33% over the past two years and finds itself in the Danger Zone this week.

by Kyle Guske II, Senior Investment Analyst, MBA

December 11, 20150Comments

David Trainer Explains Why Square Belongs In The Danger Zone

CEO David Trainer sat down with Chuck Jaffe of Money Life and MarketWatch.com to talk about our Danger Zone pick this past week: Square, Inc. (SQ)

by Kyle Guske II, Senior Investment Analyst, MBA

December 9, 20150Comments

New Stocks on Most Attractive and Most Dangerous Lists: December 2015

Our Most Attractive Stocks (-2.4%) underperformed the S&P 500 (-1.1%) last month. Our Most Dangerous Stocks (+0.4%) underperformed the S&P 500 (-1.1%) last month.

by Kyle Guske II, Senior Investment Analyst, MBA

December 7, 20152Comments

Danger Zone: Square, Inc. (SQ)

Recent IPO Square (SQ) is in the Danger Zone this week despite its noble cause of providing payment solutions for small to medium businesses because it checks many of the Danger Zone boxes: questionable non-GAAP accounting, non-competitive business models, and an extremely risky valuation.

by Kyle Guske II, Senior Investment Analyst, MBA

December 3, 20150Comments

December’s Most Attractive Stocks Available to Members Today

Gold Members and higher can access December's 40 Most Attractive Stocks as of Thursday, December 3.

by Kyle Guske II, Senior Investment Analyst, MBA

December 3, 20150Comments

December’s Most Dangerous Stocks Available to Members Today

Gold Members and higher can access December's 40 Most Dangerous Stocks as of Thursday, December 3.

by Kyle Guske II, Senior Investment Analyst, MBA

December 2, 20152Comments

Why Earnings Manipulation Is Highly Contagious

Why are earnings misstatements so contagious? Learn why these misstatements occur and warnings signs of when a company may be likely to partake in the manipulation of earnings in this special report.

by Sam McBride

December 2, 20150Comments

High ROIC Stocks Outperformed in 2008

What do these companies have in common? They are the only surviving S&P 500 stocks to rise 10% or more in 2008. In the midst of a collapsing market and the subsequent damage, these seven stocks made good money for investors.

by Sam McBride

November 30, 20152Comments

Why PE Ratios Are Not A Good Measure Of Value

We’ve pointed out the flaws in the price to earnings (PE) ratio many times before. Chief among these flaws is the fact that the accounting earnings used in the ratio are unreliable for many reasons:

by Sam McBride

November 25, 20150Comments

David Trainer Explains Why Textron Lands In The Danger Zone

CEO David Trainer sat down with Chuck Jaffe of Money Life and MarketWatch.com to talk about our Danger Zone pick this past week: Textron, Inc. (TXT)

by Kyle Guske II, Senior Investment Analyst, MBA

November 23, 20150Comments

Danger Zone: Textron, Inc. (TXT)

From non-GAAP accounting to costly acquisitions, it is not difficult for a company to create the illusion of profits. However, eventually reality sets in and the deterioration of a business comes to light. This week’s Danger Zone pick, Textron Inc. (TXT: $42/share), is destroying shareholder value while covering it up with an acquisition that creates the illusion of profits via GAAP net income growth.

by Kyle Guske II, Senior Investment Analyst, MBA

November 19, 20150Comments

Two Ways Venture Capitalists Burn IPO Investors

Structured deals help fuel the bubble in private tech companies. Startups get cash so they can keep marketing like crazy, VCs get guaranteed payouts, and everyone gets the prestige and attention of being a “unicorn”. So who suffers? IPO investors that are tricked into believing these massive valuations have any basis in reality.

by Sam McBride

November 18, 20150Comments

Long Idea: Allegiant Travel Company (ALGT)

The search for quality stocks only gets harder as companies use a growing array of tricks to deceive investors. Our research has always focused on cutting through the noise. We

by Blaine Skaggs

November 17, 20151Comments

The Dangers of Non-GAAP Earnings

It’s no secret that non-GAAP earnings allow management to directly manipulate their performance metrics. Investors must look past non-GAAP metrics to protect their portfolios. While non-GAAP tricks may provide some short-term boosts to stock prices, eventually reality sets in and the true economics of the business rule the day.

by Kyle Guske II, Senior Investment Analyst, MBA

November 17, 20151Comments

10 Land Mines From New FASB Rule For Off-Balance Sheet Debt

Last week, the Financial Accounting Standards Board (FASB) voted to update standards on operating lease accounting that would force companies to record as much as $2 trillion worth of lease obligations on their balance sheets.

by Sam McBride

November 12, 20150Comments

The Dangers of Non-GAAP Earnings Webinar

To learn the dangers of non-GAAP earnings and how to overcome them, join CEO David Trainer, a Wall Street veteran, in this week’s free webinar “The Dangers of Non-GAAP Earnings.” David will discuss what goes into non-GAAP earnings, why they create a problem in investing and analysis, and where you should focus when analyzing companies who report non-GAAP results.

by Kyle Guske II, Senior Investment Analyst, MBA

November 12, 20150Comments

David Trainer On Why Celadon Group Is In The Danger Zone

CEO David Trainer sat down with Chuck Jaffe of Money Life and MarketWatch.com to talk about our Danger Zone pick this past week: Celadon Group (CGI).

by Kyle Guske II, Senior Investment Analyst, MBA

November 12, 20150Comments

New Stocks on Most Attractive and Most Dangerous Lists: November 2015

Our Most Attractive Stocks (5.9%) slightly outperformed the S&P 500 (5.9%) last month. Our Most Dangerous Stocks (3.6%) rose less than the S&P 500 (5.9%) and outperformed as a short portfolio last month.

by Blaine Skaggs

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