New Constructs
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Stock Pick of the Week: Buy Schiff Nutrition Intl (WNI) — Very Attractive Rating – Small Cap Special

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.
by David Trainer, Founder & CEO
New Constructs
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NYSE – Why it’s on the Most Dangerous List

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.
by David Trainer, Founder & CEO