New Constructs
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The Naughty and Nice List for Retail ETFs

The holiday season is upon us, which means all eyes are going to be on the retail sector for the next few weeks. One-fifth of all retail spending in the U.S. happens during the holidays. For some retailers the period between Thanksgiving and Christmas can account for 40% of their yearly revenue. ETFs can be a good, low cost way to get exposure to the retail sector.
by David Trainer, Founder & CEO
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Danger Zone: Electronic Arts (EA)

For a while, EA appeared to have cracked the code in the middle part of this decade. By delivering sports franchises like FIFA and games like The Sims, the company saw profits and returns on invested capital (ROIC), which peaked at 93% in 2004, grow to enviable heights. Unfortunately, that strategy has proven unsustainable as ROIC has plummeted.
by David Trainer, Founder & CEO
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Danger Zone: Move, Inc (MOVE)

I don’t see any real upside for MOVE. The company is growing revenue, but extraordinary revenue growth is already baked into its price. Competitors like Zillow are already attracting more traffic, and the threat of entry by a larger company looms over the industry. MOVE is overpriced and falling behind in a competitive industry.
by David Trainer, Founder & CEO
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Proof Is In Performance Through 3Q13

There are many ways to define the quality and merit of equity research. One mea­sure stands tallest: per­for­mance of stock rec­om­men­da­tions. And by that mea­sure, New Con­structs’ research is of very high quality. See our lat­est Proof Is In Per­for­mance Thru 3Q13 Report for more details.
by David Trainer, Founder & CEO