This Pick and Shovel Stock is Still a Value
Accounting results understate the impressive profit growth of this market leader.
Sam McBride
valeant
Sam McBride
This Roll-Up Can’t Roll Forever
This firm is a classic “roll-up” that has been buying up smaller competitors for years to manufacture EPS growth. Its recent and largest acquisition to date is also the most harmful to shareholders.
Kyle Guske II, Senior Investment Analyst, MBA
ISS Buying EVA Dimensions Signals More Focus on Fundamental Research
Sophisticated investors want metrics that go deeper than reported earnings so they can get a truer picture of cash flows and hold companies accountable for capital allocation.
Sam McBride
ICYMI: New Long Idea, Tax Reform Winners, New IBKR Webinar on Machine Learning, Model Portfolio Performance Update & Best and Worst ETFs & Mutual Funds
Here's what happened at New Constructs this past week.
Kyle Guske II, Senior Investment Analyst, MBA
New Exec Comp Plan Means It’s Time to Short this Stock
Bold is one way to describe the new exec comp plan. We would call it foolhardy.
Sam McBride
How the Fiduciary Rule Can Make You Money
With full implementation scheduled for July 2019, figuring out how to deal with the fiduciary rule is the top priority for many firms and advisors. Here’s how you turn this regulatory bombshell to your advantage.
Sam McBride
A Primer on How To Define and Fulfill the Fiduciary Duty of Care
Despite the lack of regulatory guidance for fulfillment of the Duty of Care, there is plenty of common-sense guidance from thought leaders. They all agree that research that fulfills the Duty of Care should be comprehensive, objective, transparent, and relevant.
Sam McBride
Alpha-generating Forensic Accounting Examples
New Constructs’ proprietary forensic accounting research empowers investors to identify alpha-generating investment ideas more efficiently than traditional manual approaches. This report highlights investment ideas based on insights our research technology automatically provides on a firm’s true return on invested capital (ROIC) and economic earnings.
Kyle Guske II, Senior Investment Analyst, MBA
Solar Stock Face Off for The Solar Eclipse
With investors’ eyes turned towards the sun today, which of these solar stocks is the best bet to make your portfolio shine?
Sam McBride
Why Diligence Matters: Don’t Buy Acadia Healthcare’s Roll-Up
We put behavioral healthcare provider Acadia Healthcare (ACHC) in the Danger Zone just over a year ago and despite the company touting its impressive non-GAAP numbers, the stock is just as dangerous as ever.
Sam McBride
10-K Filing Season Recap
During filing season, our robo-analyst technology read through 2,139 10-K (or international equivalent) filings and collected 49,862 data points. Our analyst team used this data to make 49,862 adjustments with a dollar value of $16.1 trillion.
Sam McBride
Danger Zone: Verint Systems (VRNT)
This firm has seen seen margins contract as early success brought more competition. To try and offset competitors taking market share, the firm made numerous shareholder value-destroying acquisitions. Now the stock is pricing in aggressively optimistic improvements in revenue growth and profit margins.
Kyle Guske II, Senior Investment Analyst, MBA
Danger Zone: LivePerson Inc. (LPSN)
This Danger Zone pick has seen its profitability decline as new competition has entered the scene. As the market commoditized, this firm’s negative margins and limited service offering undermined its ability to compete.
Kyle Guske II, Senior Investment Analyst, MBA
Filing Season Finds: Week Of March 4–10
Last week, our analysts parsed 452 filings and collected 58,771 data points. In total, they made 9,978 adjustments with a dollar value of $1.5 trillion. Analyst Hunter Gray made a number of adjustments to Royal Dutch Shell’s (RDS.A) 20-F that caused us to downgrade the stock from Dangerous to Very Dangerous.
Kyle Guske II, Senior Investment Analyst, MBA
Danger Zone: Pandora Media (P)
We think the ship has sailed on this business, but the stock is still pricing in huge improvements in profitability and market share. Pandora Media (P) is in the Danger Zone this week.
Kyle Guske II, Senior Investment Analyst, MBA
ICYMI: Updated Model Portfolios and Valeant’s 10-K Red Flags
Here's what happened at New Constructs this week.
Kyle Guske II, Senior Investment Analyst, MBA
Filing Season Finds: Valeant Pharmaceuticals (VRX)
Analyst Cody Fincher made a total of 44 adjustments to Valeant’s financial statements with a total value of $50 billion. Here are our four largest takeaways from Valeant’s 10-K.
Sam McBride
This Media Giant Should Continue Its Dominance in 2017
Warren Buffet’s advice to “be fearful when others are greedy, and be greedy when others are fearful,” presents an interesting conundrum
Sam McBride
Danger Zone: Highlights & Lowlights of 2016
Our Danger Zone reports aim to identify those firms that, when looking below the surface, have struggling businesses and highly overvalued stock prices. However, the thesis does not always play out as we expect and, at times, the stock continues garnering investor interest and only grows more overvalued.
Kyle Guske II, Senior Investment Analyst, MBA
2016 In Review, Looking Ahead to Next Year
As 2016 comes to an end, we’d like to highlight some of New Constructs’ many accomplishments for this year. We’ve helped our partners and clients avoid stock blow-ups, find long ideas that soar and leverage Model Portfolios that outperform across the board.
Kyle Guske II, Senior Investment Analyst, MBA