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.

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Fiduciary Rule Delayed, But Its Impact Remains

Despite over 92% of the 193,000 comment letters opposing delay, the Department of Labor’s Fiduciary Rule has been officially delayed until June 9. No matter the legalities, investor awareness is higher.

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There’s No Getting Out Of Fiduciary Duties

We think investors’ expectation for the fiduciary standard is here to stay no matter what the official rules say — and those investors will increasingly demand that their advisers apply to their non-retirement accounts too.

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Long Idea: Wells Fargo & Company (WFC)

In the search for safe investments in today’s volatile markets, investors should focus on companies that have a history of creating shareholder value, the ability to earn quality returns on capital, and an undervalued stock. This week’s Long Idea, Wells Fargo & Company (WFC) not only fits the description of a safe investment, but its shares are also greatly undervalued.

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Why the Fed’s Stress Test Isn’t a Stamp of Approval for Investors

stress test

In this podcast, CEO David Trainer will explain why many of the big banks will not be as good investments now as they have been in the past.

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How To Avoid the Worst Sector ETFs

Picking from the multitude of sector ETFs is a daunting task.

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Danger Zone: Momentum Investors and the Financial Sector

As regulators dole out punishments that fit the crimes, they are finally closing many of the illegal trading loopholes that have driven so much of Wall Street profits over the past decade.

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Deferred Tax Assets and Liabilities – Invested Capital Adjustment

DTAs artificially raise reported assets and do not help generate operating profit while DTLs are like a source of interest-free financing. We remove the impact of DTAs and DTLs from our calculation of invested capital to ensure the more accurate measure of a firm’s return on invested capital (ROIC).

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Best & Worst ETFs and Mutual Funds: Large-cap Value Style

The Large-cap Value style ranks second out of the twelve fund styles as detailed in my Style Rankings for ETFs and Mutual Funds report. It gets my Neutral rating, which is based on aggregation of ratings of 41 ETFs and 772 mutual funds in the Large-cap Value style as of May 1, 2013.

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How To Find the Best Sector ETFs

Finding the best ETFs is an increasingly difficult task in a world where a new ETF seems to be born every 10 seconds.

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Citigroup (C) and Bank Of America (BAC) Dropped from Most Dangerous List

For the first time in many months, both Citigroup (C) and Bank Of America (BAC) are not on our Most Dangerous Stocks list as of the release of the August report.

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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.

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The Most Dangerous ETFs For March

My ratings on ETFs are unique because they are based on my stock ratings for each of a fund’s holdings.
Ergo, the “Most Dangerous” ETFs allocate the most capital to stocks on March’s Most Dangerous Stocks list, which is available for non-subscribers as of today. There are 40 stocks on the Most Dangerous list every month.

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Matt Taibbi of Rolling Stone References My Article on BAC’s New Fees

Always flattered when a journalist, especially one as famous and respected at Mr. Taibbi, references my work. His article “Bank of America In Trouble?” incorporated the meat of my “Raising Fees Is A Desperate Measure: Sell BAC” article.

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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.

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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.

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Wall $treet Week Returns: New Constructs’ Unique Research and Very Attractive Rating for AAPL

My interview with Wall $treet Week focuses on the uniquely rigorous research of New Constructs and three of our top stock picks.

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Forensic Accounting Says Avoid Energy & Financial Stocks

As one financial scandal follows another, it seems the good guys are having a tougher time catching the bad guys. Recent revelations about MF Global’s ponzi scheme are another reminder of how our regulatory and oversight systems seem to let whales pass through their net.

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ETF Shoppers: Accounting Trickery At Its Worst In Financial Sector

There are 25 financial sector ETFs. Per Figure 1, these 25 ETFs have drastically different stock holdings and, therefore, allocations. The lowest number of holdings is 24 while the highest is 496.
For starters, investors interested in the financial sector cannot expect many good investment options given that the sector gets my “dangerous” rating and ranks ninth out of the ten sectors that make up the economy. Details are in our sector roadmap report.

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Should Directors Ignore Those One-Time Items?

I do not think so. The question, however, is not so much about what directors ignore. You cannot ignore something about which you are unaware.
The real issue is that most directors and investors are simply unaware of the many one-time items because they are buried deep in the annals of footnotes in annual reports or 10-K filings.

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