Category Archives: General Market Comments
Invested Capital Turns: Explanation and Examples
Invested capital turns are an important consideration in the analysis of return on invested capital (ROIC) and a key measure of balance sheet efficiency.
Pension Cost Accounting Rule Change
The Financial Accounting Standards Board (FASB) introduced a new accounting standard that requires companies to present service cost as the only operating component of periodic pension costs on the income statement.
See Us on CNBC Discussing Wal-Mart
New Constructs CEO, David Trainer, joins CNBC’s Closing Bell to discuss Wal-Mart’s business, the competitive landscape, and its current valuation.
Ernst & Young Proves Superiority of Our Data & ROIC
In a new white paper, “Getting ROIC right: how an accurate view of ROIC can drive improved shareholder value”, E&Y demonstrates the superiority of our data analytics and the importance of getting ROIC right.
Netflix’s Price Increase Signals Original Content Isn’t Enough
We believe the price increase signifies that Netflix’s competitive advantage has been wiped away. In order to justify its massive original content budget, it must raise prices if it is to ever meet the expectations implied by its stock price.
See Us on CNBC Discussing Netflix
On Thursday October 5, New Constructs CEO, David Trainer, joined CNBC’s Closing Bell to discuss Netflix’s business, the competitive landscape, and its current valuation.
Big Banks Will Win the Fintech Revolution
Large incumbent financial firms will continue to control the bulk of the value in the industry, but the structure of the value chain and the way these firms compete will change drastically.
“Clean Up With 40 Years of Dividend Boosts” – Barron’s
On Thursday, Barron’s featured our research on a recent long idea.
United Technologies Overpaid for Rockwell Collins
Simply put, the price UTX will pay for this acquisition – which comes to ~$33 billion when accounting for all forms of debt and unfunded pension liabilities – makes it almost impossible for the deal to create long-term value for shareholders.
The Earnings Recovery Remains an Illusion
Our analysis of the latest 10-K and 10-Q filings for the S&P 500 shows that the GAAP earnings growth in the market has not translated to an increase in economic earnings.
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.
Solar Stock Face Off 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?
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).
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.
See Us On CNBC Discussing Apple @ 3ET Today
Tune into CNBC on Wednesday, August 2 at 3pm EST. New Constructs CEO, David Trainer, will discuss Apple’s business and its current valuation.
Nelson Peltz On Procter & Gamble: Sign of The Future For ROIC Laggards
Linking executive compensation to ROIC could create immediate shareholder returns and drive a long-term commitment to the lean and disciplined corporate structure that Peltz wants P&G to adopt.
Why Robo-Analysts, Not Robo-Advisors, Will Transform Investing
Robo-advisors and Robo-Analysts are both important to enabling wealth management firms to cut costs without sacrificing quality of advice, but the importance of a Robo-Analyst to enhance the quality of investment advice shouldn’t be underestimated.
“Overvalued Tech: Verint” – Barron’s
On Saturday, Barron’s featured our research on Verint (VRNT) and the company’s misleading use of non-GAAP metrics.
Hidden Trigger For Another (Flash) Crash: Passive Investing
When the investment process makes no effort to differentiate winners from losers, there is no diligence, no intelligent capital allocation, and, eventually, no efficient market.
See Us On CNBC Discussing Airline Stocks @ 3:40ET Today
Tune into CNBC on Wednesday, July 12 at 3:40pm EST. New Constructs CEO, David Trainer, will discuss airline stock’s valuation and the implied market expectations across the industry.