Danger Zone 6/10/13: “Passive” Investors
Passive investors are in the Danger Zone for not recognizing that they are actually active investors.
David Trainer, Founder & CEO
Danger Zone
David Trainer, Founder & CEO
Danger Zone 6/3/2013: Perma-Bears and Bubble Alarmists
I am optimistic about the U.S. economy and I don’t believe we are in bubble. Too many investors and economists are looking at the economy the wrong way.
David Trainer, Founder & CEO
The Truth Behind AAPL’s Numbers
This article provides some empirical evidence behind my putting Apple (AAPL) in the Danger Zone last week because its return on invested capital (ROIC) is outrageously high. That fact underscores why valuing this company or any other with the expectation that such a high ROIC was sustainable would be a mistake.
David Trainer, Founder & CEO
Danger Zone 5/20/2013: Amazon.com (AMZN)
The belief that Internet retail is or will be more profitable than traditional retail is untrue. Amazon is in a competitive, low margin business that cannot justify the profit growth implied in its valuation.
David Trainer, Founder & CEO
Danger Zone 5/13/2013: Apple Inc. (AAPL)
Too many investors are looking at AAPL through the rear view mirror and assume that its sky-high profits and return on invested capital (ROIC) are sustainable. As I detail in my CNBC interview, Apple is not cheap and investors should not underestimate the impact of losing Steve Jobs.
David Trainer, Founder & CEO
Danger Zone 5/6/2013: Charles Schwab Corp (SCHW)
Schwab (SCHW) is in the Danger Zone this week. It also gets my Very Dangerous ratings and is on May's Most Dangerous stocks list.
David Trainer, Founder & CEO
Danger Zone 4/29/2013: Financial Sector ETFs and Mutual Funds
Financials sector ETFs and Mutual Funds are in the Danger Zone this week. The Financials sector ranks last out of the ten sectors in my Sector Rankings for ETFs and Mutual Funds Report. The funds in this sector consistently hold poor stocks and charge investors high fees.
David Trainer, Founder & CEO
Danger Zone 4/22/2013: Sears Holdings (SHLD)
SHLD combines three themes that I have discussed in recent Danger Zone posts: overvaluation due to expectations of a construction rebound, hidden liabilities undermining a company’s financial strength, and online retailing making bricks-and-mortar stores obsolete.
David Trainer, Founder & CEO
Danger Zone 4/15/2013: Stanley Black & Decker (SWK)
Unrealistically high valuation and hidden liabilities outweigh the over-hyped benefits of the growth potential in commercial and residential construction to SWK.
David Trainer, Founder & CEO
Danger Zone 4/8/13: Williams Companies (WMB)
This stock is a great example of another Wall Street trap to avoid: investing based on “sector” theme and following the crowd.
David Trainer, Founder & CEO
Danger Zone 4/1/13: Express Scripts, Inc. (ESRX)
We closed this position on February 24, 2015. A copy of the associated Position Update report is here.
Check out this week’s Danger Zone interview with Chuck Jaffe of Money Life
David Trainer, Founder & CEO
Danger Zone 3/26/13: PowerShares S&P SmallCap Consumer Staples Portfolio (PSCC)
Despite the Consumer Staples Sector being ranked #1 in my Sector Rankings for ETFs and Mutual Funds report, PSCC is one of the worst sector ETFs I cover.
David Trainer, Founder & CEO
Danger Zone 3/18/2013: Ventas Inc. (VTR)
Ventas Inc. (VTR) is in the Danger Zone this week.
David Trainer, Founder & CEO
Danger Zone 3/11/2013: Praxair Inc. (PX)
Praxair Inc. (PX) is in the Danger Zone this week. Another example of the high-low fallacy masking overpayment for cash flows with rising EPS.
David Trainer, Founder & CEO
Danger Zone 3/4/2013: Wilmington Small Cap Growth Fund (ARPAX)
Wilmington Funds: Wilmington Small Cap Growth Fund (ARPAX) is in the Danger Zone this week. Deceptively high costs coupled with poor holdings make it difficult to expect this mutual fund to make money for investors.
David Trainer, Founder & CEO
Top Stock Picks: 2012 in Review
Everyone wants diligence. The problem is that diligence is expensive. I make diligence cost-effective. See how my research paid off for clients last year.
David Trainer, Founder & CEO
Danger Zone 2/25/2013: Small-cap Value ETFs & Mutual Funds
Small-cap value ETFs and mutual funds are in the Danger Zone this week due to poor holdings and high total annual costs.
David Trainer, Founder & CEO
Danger Zone 2/18/2013: Zale Corporation (ZLC)
Zale Corporation (ZLC) is in the Danger Zone this week.
David Trainer, Founder & CEO
Danger Zone 2/11/2013: Energy Sector
Investors who want exposure to this sector should buy a basket of Attractive-or-better rated stocks and avoid paying undeserved fees. Get the list of my top 20 Energy stocks to build your own portfolio.
David Trainer, Founder & CEO
Danger Zone 2/4/2013: Office Max Inc. (OMX)
Office Max Inc. (OMX) is in the Danger Zone this week. Poor capital allocation decisions and the rise of online vendors put Office Max in a precarious position.
David Trainer, Founder & CEO