CEO David Trainer sat down with Chuck Jaffe of Money Life and MarketWatch.com to talk about our Danger Zone pick this past week: Small Cap Investment Style.
CEO David Trainer sat down with Chuck Jaffe of Money Life and MarketWatch.com to talk about our Danger Zone pick this past week: Speedway Motorsports (TRK).
As the owner and operator of eight racing facilities, Speedway Motorsports' (TRK) business is heavily tied to the popularity of racing, particularly NASCAR. Shrinking revenues, large fixed costs, and an overall decline in NASCAR attendance have Speedway Motorsports crashing into the Danger Zone this week.
Investors deserve an alternative to subjective and backward-looking ratings. They deserve analysis of a fund’s holdings, not just its past performance. Investors deserve real diligence, because diligence pays.
First Trust Utilities AlphaDEX Fund ETF (FXU) is in the Danger Zone this week due to its poor holdings. FXU might not have any obvious red flags on the surface, but a look at its holdings reveals a number of stocks with the potential to blow up, including some recent features in the Danger Zone.
Rydex Sries Fund: Utilities Fund (RYUTX) is in the Danger Zone this week. Its holdings are too poor to overcome the handicap of its prohibitively high costs.
The impact on valuation: instead of a fair value in the mid $50s, I now see it in the low $40s - about 30% lower than where the stock is today. 30% dwarfs the 4% dividend yield.
I explain key details behind our uniquely rigorous research process.
I also cover my top picks and pans in the "Hold It Or Fold It" portion of my interview with host Chuck Jaffe.
Competition for Lipper and Morningstar is "heating up" according to fund-industry expert Chuck Jaffe. Research based on past performance is losing favor as investor recognize its lack of rigor and value.