TrueCar Can’t Serve Two Masters
TrueCar shares the same fatal flaw that sunk Angie’s List. As a middleman, it has to appeal to consumers while remaining valuable to its actual customers, car dealers. In trying to balance the needs of these two opposing sides, TrueCar is conflicted and struggles to provide value to either.
Podcast: Why Etsy Is In The Danger Zone
CEO David Trainer sat down with Chuck Jaffe of Money Life and to talk about our Danger Zone pick this past week: Etsy Inc. (ESTY).
Too Much Market Value for Too Small a Market
This niche business generates plenty of “adjusted EBITDA,” but no real profits. It also has too much market value for too small a market, especially in light of its deteriorating competitive position. Absent a textbook case of “stupid money risk,” (i.e. a grossly overpriced acquisition) the risk/reward does not look good for equity investors.
Closing Danger Zone Pick: VirnetX Holding Corp (VHC)
While business prospects still hinge upon patent infringement rulings, the significantly lower valuation no longer presents the unbalanced risk/reward it once did.
Closing Danger Zone Pick: Verifone Systems (PAY)
While fundamental issues remain, such as a bottom-quintile ROIC and a challenging competitive landscape, we are inclined to take profits.
Closing Danger Zone Pick: Shutterstock (SSTK)
The significant reduction in stock price and embedded market expectations diminishes the downside risk and we are closing the position.
Closing Danger Zone Pick: Celadon Group (CGI)
The significant reduction in stock price and embedded market expectations diminishes the downside risk and we are closing the position.
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).
Podcast: Why Acadia Healthcare Is In The Danger Zone
CEO David Trainer sat down with Chuck Jaffe of Money Life and to talk about our Danger Zone pick this past week: Acadia Healthcare (ACHC).
Podcast: Why Investors Ignoring This Industrials Stock Are In The Danger Zone
CEO David Trainer sat down with Chuck Jaffe of Money Life to talk about an Industrials stock that investors should not overlook.
Why Diligence Matters: Don’t Buy Acadia Healthcare’s Roll-Up
We put behavioral healthcare provider Acadia Healthcare (ACHC) in the Danger Zone just over a year ago and despite the company touting its impressive non-GAAP numbers, the stock is just as dangerous as ever.
Podcast: Why Health Care Funds Are In The Danger Zone
Kenneth James sat down with Chuck Jaffe of Money Life and to talk about our Danger Zone pick this past week: Health Care Sector Mutual Funds.
Podcast: Why Investors Ignoring This Small Cap Fund Are In The Danger Zone
CEO David Trainer sat down with Chuck Jaffe of Money Life to talk about a Small Cap fund that investors should not overlook.
Health Care Sector Mutual Funds Enter the Danger Zone
70% of Health Care sector mutual funds are rated Unattractive or Very Unattractive. This particularly risky fund allocates heavily towards speculative stocks and charges high fees based on past performance that managers are having an increasingly difficult time replicating.
Podcast: Why Redfin Is In The Danger Zone
CEO David Trainer sat down with Chuck Jaffe of Money Life and to talk about our Danger Zone pick this past week: Redfin (RDFN).
Podcast: Why Investors Ignoring This Industry Are In The Danger Zone
CEO David Trainer sat down with Chuck Jaffe of Money Life to talk about an industry that investors should not overlook.
Brokerage or Tech Firm? Redfin’s Valuation Requires the Latter
In light of its optimistic valuation and the downside risk associated with the business ultimately being viewed as a traditional real estate brokerage with fancy apps, this upcoming IPO is in the Danger Zone this week.
Podcast: Why CoStar Group Is In The Danger Zone
CEO David Trainer sat down with Chuck Jaffe of Money Life and to talk about our Danger Zone pick this past week: CoStar Group (CSGP).
Podcast: Why Investors Ignoring This Toy Stock Are In The Danger Zone
CEO David Trainer sat down with Chuck Jaffe of Money Life to talk about a Long Idea that investors should not overlook.
A Misunderstood and Overvalued Growth Stock
This firm’s questionable acquisition strategy has resulted in a ballooning balance sheet that diminishes the capacity to create shareholder value by improving return on invested capital (ROIC). Further, the profit growth expectations embedded in the stock price have moved beyond what the company can reasonably be expected to achieve.