January’s Most Attractive Stocks are now available.
Technology and Pharmaceutical stocks predominate compared to other sectors. One newcomer to the list, Seagate Technology (STX), is actually an old friend. STX made
Retail and Financials are the most common stocks on our Most Dangerous Stocks list for January. Now that the holiday shopping season is behind us, we see little incremental upside in the retail and financial sectors.
The December version of our Most Attractive Stocks report is now available. Note that Barron’s recently recognized our Most Attractive Stocks portfolio as #1 over the prior 12 months amongst
The December version of our Most Attractive Stocks and Most Dangerous Stocks reports are now available for purchase. Note that Barron's recently recognized our Most Attractive Stocks portfolio as #1 over the prior 12 months amongst the best of the Wall Street research firms.
HIDDEN GEMS:
1. Our discounted cash flow analysis shows that WNI’s current valuation (stock price of $7.89) implies that the company’s profits will decline by 25% and never grow again.
2. The company grew its economic earnings more than its reported earnings. Economic earnings rose by $9.1mm (506% increase) while Net Income rose by only $8.1mm (79% increase) during its last fiscal year.
3. The company has $42mm in Excess Cash, which we remove from our Invested Capital calculation. $42 million is 20% of WNI’s market cap.
There are two primary reasons a stock gets on our Most Dangerous List:
1. Misleading earnings: reported GAAP earnings are positive and rising while economic earnings are negative and declining
2. Expensive valuation: future cash flow expectations embedded in the current price are unusually high especially compared to historical performance.
Free copy of our report on NYX is in the Free Archive on www.newconstructs.com. Or just click here: NYX Company Valuation Report.
David Trainer, Founder & CEO
