Safest Dividend Yields
Firms with strong core earnings will be able to sustain their dividends.
Kyle Guske II, Senior Investment Analyst, MBA
cash flow
Kyle Guske II, Senior Investment Analyst, MBA
Uber’s IPO Valuation Makes No Sense
In almost every respect, Uber looks even more dangerous than Lyft (LYFT), which is already down from its overvalued IPO price.
Sam McBride
Danger Zone: Valeant Pharmaceuticals (VRX)
We’ve been highlighting the dangers of Valeant for over two years and we do not see them abating. As long as management is incentivized to destroy shareholder value, Valeant is in the Danger Zone.
Kyle Guske II, Senior Investment Analyst, MBA
Netflix Earnings Miss: One Of Many To Come
So what happens when that subscriber growth disappoints? NFLX shares face a stark reality in which the business operations aren’t justifying the current share price, far from it actually. We’ll detail some of the issues facing Netflix below.
Kyle Guske II, Senior Investment Analyst, MBA
3 Reasons Why Amazon’s “Cash Flow” Is A Trap
As a follow up to our Danger Zone article on May 20th, 2013, we review the "cash flow" thesis proffered by Jeff Bezos and Amazon (AMZN) bulls.
David Trainer, Founder & CEO
Buy The Travelers Co (TRV) – Very Attractive Rating
HIDDEN GEMS:
1. About $29 million in non-operating expenses (after-tax) cause reported earnings to be understated.
2. Our dis¬counted cash flow analy¬sis shows that TRV’s cur¬rent val¬u¬a¬tion (stock price of $55.49) implies that the company’s profits will decline by 30% and never grow again.
3. The company grew its economic earn¬ings by $827mm during its last fiscal year.
David Trainer, Founder & CEO
JDS Uniphase Cp (JDSU) — free report for Ask Matt, Dangerous Rating
RED FLAG: Our analysis of the Financial Footnotes reveals: the company has written off over $60bn in assets over the last twelve years. That is a big number compared to the company’s market cap of roughly $2.2bn and its net assets of about $1.3bn. This results in economic earnings of -$5,346mm compared to Net Income of -$866mm during the last fiscal year. For details on what causes the difference between Economic Versus Accounting Profits, see Appendix 3 on page 10 of our free report on JDSU.
David Trainer, Founder & CEO
McDonalds Corp (MCD) – free report for Ask Matt, Very Attractive Rating
HIDDEN GEM: Our detailed valuation model shows that MCD grew its “economic” profits more than it accounting profits during its last fiscal year. Economic profits rose by $272mm while accounting profits rose by $238mm. For details on what causes the difference between Economic Versus Accounting Profits, see Appendix 3 on page 10 of our free report on MCD.
David Trainer, Founder & CEO
Sandridge Energy (SD) – Free Report, for Ask Matt Readers, Highlighting a Major Red Flag in the Footnotes
Here is our free report on Sandridge Energy for Ask Matt readers. Our analysis of the Financial Footnotes reveals a major RED FLAG: the company has written off over $3.4bn in assets in just the last two years.
David Trainer, Founder & CEO
Stock Pick of the Week: Buy International Business Machines (IBM)
HIDDEN GEM: Our detailed valuation model shows that IBM grew its "economic" profits more than it accounting profits during its last fiscal year. Economic profits rose by $1.15bn while accounting profits rose by $1.09bn.
David Trainer, Founder & CEO
Economic Versus Accounting Earnings
Accounting data was not designed for equity investors, but for debt investors. "Earnings, earnings per share and earnings growth are misleading measures of corporate performance."(from page 66 in The Quest For Value by Bennett Stewart, Harper Collins 1991.)
David Trainer, Founder & CEO
Stock Pick of the Week: Sell/Short Yahoo (YHOO)
Overall, the Risk/Reward of investing in Yahoo's stock looks Very Dangerous to me. There is lots of downside risk given the Misleading Earnings and there is little upside reward given the already-rich expectations embedded in the stock price.
David Trainer, Founder & CEO
Top Ranking for Stock Picking for New Constructs
New Constructs stock-picking consistently ranks among the best of the nationally-recognized research firms.
David Trainer, Founder & CEO
Stock Pick of the Week: Buy Xilinx (XLNX)
HIDDEN GEM: Our detailed valuation model shows that XLNX grew its "economic" profits by nearly $14mm during its last fiscal year while it reported an $18mm decline in accounting profits.
David Trainer, Founder & CEO
New Constructs Receives Patent on Research System
The United States Patent and Trademark Office awarded us patent #7,752,090, titled: System and Method For Reversing Accounting Distortions and Calculating A True Value of a Business.
David Trainer, Founder & CEO
Stock Pick of the week: Buy Myriad Genetics (MYGN)
A newcomer to our Most Attractive Stocks for July, this small cap stock has an excellent risk/reward profile, which earns it our highest Rating: Very Attractive.
David Trainer, Founder & CEO
No Double-Dip Recession In Sight, Just Slow(er) Growth
As highlighted in LPL Group excellent "Mid-Year Outlook for 2010", the economy is moving from 'recovery' mode to 'expansion' mode, which is very different from moving from 'recovery' back to 'recession' - a prediction made by many attention-seeking alarmists these days. We are still growing, just not as fast.
David Trainer, Founder & CEO
Charles Schwab Corp (SCHW) Neutral Risk/Reward Rating for Ask Matt Readers
Here is a free copy of our report on SCHW for Ask Matt readers. This report provides details behind Matt's analysis of SCHW in his recent article in USA Today:
David Trainer, Founder & CEO
Investing vs Speculating
The difference between Investing and Speculating is much larger than Wall Street would have you believe. In fact, they could not be too more different activities. Speculating is gambling. Investing is intelligent decision-making.
David Trainer, Founder & CEO
GAP is Stock Pick of the Week – Hidden Gem
Hidden Gem - GPS: economic earnings are rising faster than reported accounting earnings b/c the company lowered the capital employed to run the business. GAAP earnings do not capture increase capital efficiency of the business.
David Trainer, Founder & CEO