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Danger Zone: Electronic Arts (EA)

For a while, EA appeared to have cracked the code in the middle part of this decade. By delivering sports franchises like FIFA and games like The Sims, the company saw profits and returns on invested capital (ROIC), which peaked at 93% in 2004, grow to enviable heights. Unfortunately, that strategy has proven unsustainable as ROIC has plummeted.
by David Trainer, Founder & CEO
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Danger Zone: Move, Inc (MOVE)

I don’t see any real upside for MOVE. The company is growing revenue, but extraordinary revenue growth is already baked into its price. Competitors like Zillow are already attracting more traffic, and the threat of entry by a larger company looms over the industry. MOVE is overpriced and falling behind in a competitive industry.
by David Trainer, Founder & CEO
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Danger Zone 9/16/13: E*Trade Babies

Online trading firms aim to exploit the gullibility of many retail investors by encouraging the myth that they can outperform professional money managers armed with vastly greater resources, experience and expertise. The E*Trade babies are the most glaring symbol of this myth. The symbol also reinforces the notion that investing is an easy task that takes no special effort or aptitude to succeed.
by David Trainer, Founder & CEO