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.
Kyle Guske II, Senior Investment Analyst, MBA
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.
Sam McBride
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.
Kyle Guske II, Senior Investment Analyst, MBA
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).
Kyle Guske II, Senior Investment Analyst, MBA
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.
Blaine Skaggs
4 Reasons Executives Manipulate Earnings
While most earnings manipulation is not as blatant as the recent Valeant revelations, the fact remains that investors have to be on the lookout for earnings management at all times. To be properly vigilant, it’s important to understand why executives misstate earnings. When you understand the why, you’ll have a better sense of what you need to look for.
Kyle Guske II, Senior Investment Analyst, MBA
Danger Zone: Celadon Group (CGI)
Because P/E ratios are dependent upon earnings, which we know can be manipulated, they can be quite misleading. This week’s Danger Zone is a perfect of example of just how misleading those P/E ratios can be. With a P/E ratio less than half that of its industry average, this week’s Danger Zone stock, Celadon Group Inc. (CGI) would appear cheap because of strong EPS when, in fact, its cash flows are in decline and the stock is highly overvalued.
Kyle Guske II, Senior Investment Analyst, MBA
Long Idea: Brocade Communications Systems (BRCD)
This week’s Long Idea not only pays a quality dividend, but when combined with aggressive share repurchases, provides investors a yield over 9%. Best of all, it is anything but a trap. With consistent profit growth, strong free cash flow, and the opportunity for share price appreciation, Brocade Communications Systems (BRCD) is this week’s Long Idea.
Kyle Guske II, Senior Investment Analyst, MBA
David Trainer Discusses Why ServiceNow 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: ServiceNow (NOW).
Kyle Guske II, Senior Investment Analyst, MBA
November’s Most Attractive Stocks Available to Members Today
Gold Members and higher can access November's 40 Most Attractive Stocks as of Wednesday, November 4.
Kyle Guske II, Senior Investment Analyst, MBA
November’s Most Dangerous Stocks Available to Members Today
Gold Members and higher can access November's 40 Most Dangerous Stocks as of Wednesday, November 4.
Kyle Guske II, Senior Investment Analyst, MBA
Danger Zone: ServiceNow (NOW)
Just when we think the market is becoming more rational and beginning to focus on fundamentals again we find a stock that proves that idea wrong. Once again, we’ve identified a business that fails to generate profits, uses “adjusted” metrics as “better representations of business”, and who’s stock price is up over 200% since late 2012. ServiceNow (NOW) is in the Danger Zone this week.
Kyle Guske II, Senior Investment Analyst, MBA
How To Avoid the Worst Style Mutual Funds 4Q15
The large number of mutual funds has little to do with serving investors’ best interests. Here are three red flags investors can use to avoid the worst mutual funds.
Kyle Guske II, Senior Investment Analyst, MBA
How To Avoid the Worst Style ETFs 4Q15
Why are there so many ETFs? ETF providers tend to make lots of money on each ETF so they create more products to sell. The large number of ETFs has little to do with serving your best interests. Here are three red flags you can use to avoid the worst ETFs.
Kyle Guske II, Senior Investment Analyst, MBA
How To Avoid the Worst Sector Mutual Funds 4Q15
The large number of mutual funds has little to do with serving your best interests. Here are three red flags you can use to avoid the worst mutual funds
Kyle Guske II, Senior Investment Analyst, MBA
How To Avoid the Worst Sector ETFs 4Q15
Why are there so many ETFs? ETF providers tend to make lots of money on each ETF so they create more products to sell. The large number of ETFs has little to do with serving your best interests. Below are three red flags you can use to avoid the worst ETFs:
Kyle Guske II, Senior Investment Analyst, MBA
How To Find The Best Style Mutual Funds 4Q15
Finding the best style mutual funds is an increasingly difficult task in a world with so many to choose from. How can you pick with so many choices available?
Kyle Guske II, Senior Investment Analyst, MBA
How to Find the Best Style ETFs 4Q15
Finding the best style ETFs is an increasingly difficult task in a world with so many to choose from. How can you pick with so many choices available?
Blaine Skaggs
How to Find the Best Sector Mutual Funds 4Q15
Finding the best sector mutual funds is an increasingly difficult task in a world with so many to choose from. How can you pick with so many choices available?
Kyle Guske II, Senior Investment Analyst, MBA