The Unicorn Bubble Is Bursting
Public market investors seem to have awoken to the risks of buying into certain IPOs and realized they have the power to walk away.
Sam McBride
General Market Comments
Sam McBride
Long-Term Trends Revealed by Our Research on Sector ROIC’s
Our analysis of return on invested capital (ROIC) by sector shows that the market rewards higher ROIC companies with higher valuations.
Sam McBride
Market Outlook: Avoid Small Cap Growth
Investors need diligence more than ever to help them avoid stocks with misleading growth.
Sam McBride
Big Tech Still Dominates Economic Earnings Growth
GAAP earnings don’t just mislead investors about the amount of growth in 2018, they also present a misleading picture of the breadth of earnings growth.
Sam McBride
The Fed Is Irrelevant: Low Interest Rates Are the New Normal
We believe Jerome Powell's announcement that the Fed is not planning to raise rates in the immediate future validates the key points we made over two years ago.
Sam McBride
How Debt to Equity Can Mislead Investors
Millions of professional investors will soon see over $3 trillion in new debt added to corporate balance sheets, which will affect some stocks and sectors much more than others.
Sam McBride
The “Earnings Recovery” Remains an Accounting Mirage
U.S. equities may have rebounded from 2015 lows, but economic earnings – which reverse accounting distortions and account for the weighted average cost of capital – remain in...
Kyle Guske II
Danger Zone: Investors Who Ignore Accounting Rule Changes
Investors that don’t pay attention to this accounting rule change are taking on unnecessary risk by mistaking an upcoming change as a fundamental change in these businesses.
Sam McBride
Worst Offenders: Pension Discount Rates
This report red flags the firms with the most underfunded pensions and the most aggressive discount rate assumptions for future benefit obligations.
Sam McBride
5 Charts That Prove We’re Not in Another Tech Bubble
When you dig past the noise and look at the data, it’s clear that there’s no comparison between today and 1999. Valuations today are stretched, but not in bubble territory.
Sam McBride
Worst Offenders: Expected Return On Plan Assets
This report red flags the firms with the most underfunded pensions and the most aggressive assumptions for returns they expect to earn on the pension assets.
Sam McBride
Can the Market Grow Into its Valuation?
The good news is that the market’s valuation remains well below its pre-2008 levels. Barring any major negative news (e.g. an oil crisis), we expect to see a relatively flat...
Sam McBride
ISS Buying EVA Dimensions Signals More Focus on Fundamental Research
Sophisticated investors want metrics that go deeper than reported earnings so they can get a truer picture of cash flows and hold companies accountable for capital allocation.
Sam McBride
Tax Reform Losers: Companies with Deferred Tax Assets
Most public companies should benefit from the new tax law but some of the biggest losers will be companies with large deferred tax assets (DTAs).
Sam McBride
Tax Reform Winners: Companies with Deferred Tax Liabilities
Most public companies should benefit from the new tax law and some of the biggest winners will be companies with large deferred tax liabilities (DTLs).
Sam McBride
Only One Sector Has Experienced A True Earnings Recovery
Accounting earnings may have rebounded from 2015 lows, but economic earnings—which reverse accounting distortions and account for the weighted average cost of capital...
Sam McBride
Follow up to Morningstar: Questions Remain
We appreciate Morningstar (MORN) taking the time to answer our article. Rather than go point by point through Morningstar’s rebuttal, we just want to follow up with a few...
Sam McBride
Morningstar’s Dominance: The Good, Bad and the Ugly
Investors and advisors deserve other, independent sources of research that go beyond Morningstar’s backward-looking methodology.
Sam McBride
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...
Sam McBride
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.
Sam McBride