Prepared & Here To Help – When It Matters Most
We have not experienced any disruptions thus far and do not anticipate any operational issues in the future.
David Trainer
General Market Comments
David Trainer
Here for You – When It Matters Most
Despite all the disruptions, New Constructs is fully operational and here for you when you (and your portfolios) need us most.
David Trainer
Three Stocks That Could Surprise During Earnings Season
We’ve identified three large-cap stocks that should surprise when they announce earnings over the coming weeks.
Kyle Guske II
Earnings Distortion Analysis Reveals Opportunity in Defensive Sectors
This sector has the least earnings distortion, earns an Attractive rating, and provides value for investors.
Sam McBride
Only One Sector Has A Rising ROIC
The core fundamentals of businesses are declining in nearly every sector. 10 out of 11 sectors have declining returns on invested capital.
Sam McBride
Consensus Earnings Are Wrong & How Much Is It Costing You?
Core earnings, when adjusted for unusual gains/losses hidden in footnotes, are a lot worse than investors and markets realize.
Sam McBride
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
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 a persistent downturn.
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 market for the rest of 2018 as company fundamentals catch up to the gains of last year.
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