Free report for Ask Matt, AT&T (T) – Dangerous Rating
Here is our free report on AT&T (T), which gets our Dangerous Rating.
David Trainer, Founder & CEO
Danger Zone
David Trainer, Founder & CEO
Pensions Weigh On Goodyear (GT) Stock Potential
Goodyear Tire & Rubber (GT) must overcome $3.7 billion in underfunded pensions plus $6.3 billion in debt ($1.1 billion of which is off balance sheet) before investors could see any upside.
David Trainer, Founder & CEO
Why is S&P Raising Its Outlook on Delta (DAL)?
After S&P’s recent upgrade to its outlook on Delta Airlines [s: DAL], I cannot help but to wonder how they do their analysis.
David Trainer, Founder & CEO
Bail Out of DAL Before the Stock Crashes
I recommend investors avoid Delta Airlines (DAL). I think the stock could see significant downward pressure as more investors realize how the company is propping up its earnings with relatively aggressive accounting for its pension and postretirement plan (“pensions”), which are already seriously underfunded.
David Trainer, Founder & CEO
Top Stock Picks: 2011 In Review
Everyone wants diligence. Few will ever turn it down. The problem is that diligence is expensive. New Constructs makes diligence cost-effective.
David Trainer, Founder & CEO
Bank Of America (BAC): Very Dangerous Rating — for Ask Matt Readers
Bank Of America (BAC) gets our Very Dangerous rating because it has misleading earnings and a very expensive valuation. Here is my free report on BAC.
David Trainer, Founder & CEO
Get Off the SBUX Bandwagon Before It Crashes
Be wary of advice from the bandwagon riders. They care more about getting more people in the bandwagon than anything else.
The Starbucks (SBUX) bandwagon is a big one. I am not on it.
David Trainer, Founder & CEO
Sell BAC: Management Is Running Out of Gimmicks
Year to date, Bank Of America (BAC) stock is up nearly 45% compared to the S&P at +about 8%. BAC stock has bounced back nicely after dropping precipitously at the end of last year.
I would call the 45% bounce a “dead cat” bounce because I expect the stock to fall right back to $5/share, where it bottomed last Thanksgiving, or lower.
David Trainer, Founder & CEO
Raising Fees Is A Desperate Measure: Sell BAC
Recent news that Bank Of America (BAC) is considering jacking up its fees on basic checking accounts suggests the company is bad shape. As I wrote yesterday, I believe BAC stock is headed back to its lows and today’s news confirms my view that the expectations basked into the stock’s valuation are writing checks that the company cannot cash.
David Trainer, Founder & CEO
CNBC Interview: Starbucks Earnings Review and Stock Rating
Another CNBC's Closing Bell interview on Starbucks... I am still a bear on the stock (SBUX).
David Trainer, Founder & CEO
Eastman Kodak (EK) Will Go Bankrupt
After accounting for its underfunded retirement obligations, Eastman Kodak’s net market value is about -$3.50 per share.
David Trainer, Founder & CEO
Don’t Be Fooled: The Euro Will Take Us All Down
Do not be fooled by the recent stock market run-up. Think of it as a set-up for a fall. Investors need to protect their portfolios from the eventual economic decline that will stem from the euro debacle.
David Trainer, Founder & CEO
Get Short Now: Explanation For “The Euro Will Take Us All Down”
Here is the explanation behind why I suggested investors "brace" their portfolio and go net short in my "Don’t be fooled: Get short now" column on MarketWatch.com. In addition, I provide free reports on the stocks and funds I suggest shorting.
David Trainer, Founder & CEO
Short VMware (VMW) As Hedge for Euro Recession
VMW’s valuation has its head in the clouds.
This stock is a great short in most any scenario and is especially attractive in the event of a global economic slowdown led by a recession in Europe.
David Trainer, Founder & CEO
MF Global Was a Dangerous-rated Stock
New Constructs rated MF Global (MF) a Dangerous stock long before it blew up.
David Trainer, Founder & CEO
Utility Sector: Check The Ingredients Before Buying
High dividend yields are NOT enough to warrant investing in the utilities sector.
Too many investors put their hard-earned money in utility stocks with the assumption that relatively high-yielding dividends from stable business make a good investment.
The real question that investors in any equity security must ask is: does my expected return from a stock justify the risk of investing in it?
David Trainer, Founder & CEO
Sell Starbucks (SBUX) – Still A Bad Stock
Similar to my prior interviews on SBUX, I found it easy to make the bear case for a stock that is as expensive as Starbucks (SBUX). As my regular readers know, when I say "expensive", I back that up with details such as: to justify its $40 stock price (closing price from prior day), SBUX had to grow profits at 10% compounded annually for more than 25 years.
David Trainer, Founder & CEO
Stock Brawl on Starbucks (SBUX)
In addition to my stock-brawl interview on Thursday (9/29/11), I have commented to the media on Starbucks (SBUX) many times. Below is a list (with links) to my past opinions/comments on SBUX.
David Trainer, Founder & CEO
Sell Baker Hughes Before The Stock Goes Up In Fumes
It is only a matter of time before oil and gas stocks stop moving with the price of oil and start reflecting their underlying economics.
When this happens, Baker Hughes (BHI – “very dangerous” rating) will be among the stocks that fall the hardest.
David Trainer, Founder & CEO
Sell Starwood Before FASB Closes Loophole That Boosts EPS
Accounting rules provide the biggest loopholes to asset intensive businesses. And the off-balance sheet operating lease loophole is one of the biggest.
By exploiting this loophole, Starwood is able to omit nearly $1 billion in debt from its balance sheet in 2010, $200 million (20% of the total) was added in 2010.
David Trainer, Founder & CEO