How To Protect Your Portfolio As Well As Your Colleague’s Webinar


In this webinar, CEO David Trainer, a Wall Street veteran, will discuss strategies that worked in the last market crash and the one thing that always matters when everything else breaks down.

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ROIC: The Paradigm For Linking Corporate Performance To Valuation


It’s incredible that corporate executives and the market as a whole continue to depend on such flawed numbers when we already have a measure that is clearly linked with value creation: return on invested capital (ROIC).

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Don’t Get Snowed In By These Blizzard Stocks


Beyond the absurdity of basing investment decisions on a temporary weather event, these recommendations can be harmful to investors because they involve some stocks with very shaky fundamentals at a time when market volatility makes investing in strong businesses all the more important.

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Netflix Thesis Remains Intact – Post 4Q15 Earnings


After the 4Q15 release and conference call, Netflix ($107.89/share) remains in the Danger Zone, and we are sticking with our Dangerous rating.

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If ROIC Is So Great, Then Why Doesn’t Everyone Use It?


Why do investors, executives, and the financial media focus on reported earnings and other metrics such as EBITDA that ignore the balance sheet? Why aren’t executives around the world adopting ROIC in order to boost returns?

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Netflix Update – Pre 4Q15 Earnings


As Netflix (NFLX: $104/share) readies to report earnings the afternoon of January 19, 2016, we’d like to take a look at what we know, what we expect, and review just how overvalued NFLX remains.

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New Constructs Featured In Barron’s This Past Weekend


This past weekend, Barron’s magazine featured our research for the first time in 2016 and 17th time since 2014. This time, Barron’s featured research from our recent Danger Zone report on Qlik Technologies (QLIK).

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10 Stocks To Get You Through A Bear Market


We’ve put together a list of ten stocks that could continue to earn strong returns even if the market turns bearish. These stocks have three things in common

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True Value Investing Still Works


Investors looking for value need to take a holistic approach that measures a company’s ability to deliver economic earnings to investors and quantifies the expectations for future cash flows embedded in its current stock price.

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How Much Quality Is In The “High Quality” ETF?


With the significant drop in the market to start 2016, we can be sure that many investors are looking to shift their portfolios towards higher quality stocks. The challenge is how to define “high-quality” because it is not as straightforward as one might think.

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Finding Safe Investments In A Dangerous Market Webinar


While trading fads come and go, good fundamental research is required to fulfill your fiduciary duties to your clients and yourself. Without it, realize it or not, you take significant risk that the numbers you use to make a decision are not correct.

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The Problem With Using Accounting Book Value


In our recent article on the flaws in return on equity, we showed how it has no correlation with several different measures of valuation. However, there is one valuation metric, price-to-book (“P/B”), that, at first, appears to correlate strongly with ROE. A more rigorous look reveals the relationship between the two variables is not as…

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4 Reasons ROE Is Not A Useful Metric For Investors


Recently, we ran through the various flaws in the price to earnings ratio and explained why investors need to be paying more attention to return on invested capital (ROIC). This week, we’re tackling another of the market’s favorite metrics, return on equity (ROE). Return on equity has a very simple formula: It’s tempting to think…

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Operating Lease Obligation Discount Rate Update


We have recently updated our treatment of Operating Lease Obligations to use a fixed rate as the discount rate for capitalizing the lease obligations and calculating the implied interest for all companies over all history.

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The Market Values High ROIC Companies


Last month, Fortune released its list of the top 50 businesspeople of the year. The recognition these CEO’s are receiving shows that the market cares about ROIC, even if many investors aren’t explicitly talking about it.

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High ROIC Stocks Outperformed in 2008


What do these companies have in common? They are the only surviving S&P 500 stocks to rise 10% or more in 2008. In the midst of a collapsing market and the subsequent damage, these seven stocks made good money for investors.

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Why PE Ratios Are Not A Good Measure Of Value


We’ve pointed out the flaws in the price to earnings (PE) ratio many times before. Chief among these flaws is the fact that the accounting earnings used in the ratio are unreliable for many reasons:

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Two Ways Venture Capitalists Burn IPO Investors


Structured deals help fuel the bubble in private tech companies. Startups get cash so they can keep marketing like crazy, VCs get guaranteed payouts, and everyone gets the prestige and attention of being a “unicorn”. So who suffers? IPO investors that are tricked into believing these massive valuations have any basis in reality.

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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.

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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.

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