March 16, 20200Comments

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.

by David Trainer, Founder & CEO

December 4, 20190Comments

Earnings Distortion Analysis Reveals Opportunity in Defensive Sectors

This sector has the least earnings distortion, earns an Attractive rating, and provides value for investors.

by Sam McBride

November 20, 20191Comments

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.

by Sam McBride

September 16, 20191Comments

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.

by Sam McBride

May 20, 20192Comments

Market Outlook: Avoid Small Cap Growth

Investors need diligence more than ever to help them avoid stocks with misleading growth.

by Sam McBride

April 16, 20190Comments

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.

by Sam McBride

January 31, 20190Comments

The Fed Is Still 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.

by Sam McBride

December 13, 20180Comments

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.

by Sam McBride

December 3, 20180Comments

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.

by Kyle Guske II, Senior Investment Analyst, MBA

October 22, 20180Comments

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.

by Sam McBride

August 22, 20180Comments

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.

by Sam McBride

July 16, 20184Comments

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.

by Sam McBride

June 18, 20182Comments

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.

by Sam McBride

May 9, 20181Comments

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.

by Sam McBride

April 4, 20182Comments

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.

by Sam McBride

February 8, 20180Comments

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).

by Sam McBride

January 31, 20180Comments

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).

by Sam McBride

January 11, 20182Comments

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 (WACC)—remain in a persistent downturn.

by Sam McBride

November 21, 20170Comments

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 unanswered questions.

by Sam McBride

November 2, 20170Comments

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.

by Sam McBride

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