Competition Taking Market Share Could Sink This Stock
Risk of losing market share, when coupled with highly negative margins, unsustainable cash burn, and a soaring stock price mean this firm lands in the Danger Zone.
Featured Stocks in October’s Safest Dividend Yields Model Portfolio
Three new stocks make our Safest Dividend Yield Model Portfolio this month. Get a free look at one of the stocks in this month’s portfolio.
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.
New Stocks on Safest Dividend Yields Model Portfolio: April 2017
The best performing stocks in the portfolio were large cap stock Tupperware Brands (TUP), which was up 6% and small cap stock, CBL & Associates Properties (CBL), which was up 11%. Get a look at one of the new stocks on April’s Model Portfolio.
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.
New Stocks on Safest Dividend Yields Model Portfolio: February 2017
Our Safest Dividend Yields Model Portfolio (+1.9%) underperformed the S&P 500 (+4.1%) last month. The best performing stocks in the portfolio were large cap stock Cisco Systems (CSCO), which was up 13%, and small cap stock, Highway Holdings (HIHO), which was up 9%.
Danger Zone: Palo Alto Networks (PANW)
The fundamentals of this business make it hard to imagine a scenario where this firm can meet the expectations baked into its lofty valuation. For these reasons and more, Palo Alto Networks is in the Danger Zone this week.
Large Cap Value Style 4Q16: Best and Worst
The Large Cap Value style ranks third out of the twelve fund styles as detailed in our 4Q16 Style Ratings for ETFs and Mutual Funds report. It gets our Neutral rating.
How Clinton And Trump’s Fiscal Policy Will Impact The Economy
Much has been made of the candidates’ sharp differences, but there’s one area where they have put forward remarkably similar plans. Both candidates agree: repatriate offshore cash, invest in infrastructure
Danger Zone: 8×8 (EGHT)
This week’s Danger Zone is a company that claims consistent profitability and continued success, despite years of shareholder value destruction. Misleading non-GAAP results, large losses, and an overvalued stock price land 8×8 in the Danger Zone.
All Cap Growth Style 3Q16: Best and Worst
The All Cap Growth style ranks sixth out of the twelve fund styles as detailed in our 3Q16 Style Ratings for ETFs and Mutual Funds report. It gets our Neutral rating.
Danger Zone: FireEye Inc. (FEYE)
Many investors saw the recent price decline as a time to buy, and the stock is up 30% since mid-May. With shares now greatly overvalued plus large profit losses and strong competition, FireEye (FEYE) is this week’s Danger Zone pick.
Danger Zone: Interactive Intelligence (ININ)
But what happens when a once profitable company makes the transition to the cloud and has become largely unprofitable? That company, Interactive Intelligence (ININ) is in the Danger Zone this week.
The Best and Worst of the Information Technology Sector 2Q16
The Information Technology sector ranks fourth out of the ten sectors as detailed in our 2Q16 Sector Ratings for ETFs and Mutual Funds report. It gets our Neutral rating.
Open Letter to Larry Ellison: How To Boost Oracle’s Value By $65 Billion
Thesis: Management can boost the market value of ORCL in the amounts provided by aligning the firm’s strategy and performance compensation with real cash flows or what we call return on invested capital.
Danger Zone: Pure Storage (PSTG)
This week’s Danger Zone hones in on another IPO from 2015 that may have been one of the last to capitalize on the easy money in the market. Post IPO, we believe it won’t take long for investors to realize this company is bleeding cash, has no profits, and faces stiff competition moving forward.
Long Idea: Brocade Communications Systems (BRCD)
This week’s Long Idea not only pays a quality dividend, but when combined with aggressive share repurchases, provides investors a yield over 9%. Best of all, it is anything but a trap. With consistent profit growth, strong free cash flow, and the opportunity for share price appreciation, Brocade Communications Systems (BRCD) is this week’s Long Idea.
The Best and Worst of the All Cap Blend Style 4Q15
The All Cap Blend style ranks third out of the twelve fund styles as detailed in 4Q15. Last quarter, the All Cap Blend style ranked third as well. It gets our Neutral rating.
New Stocks on Most Attractive and Most Dangerous Lists: October 2015
Our Most Attractive Stocks (-1.6%) underperformed the S&P 500 (-1.4%) last month. Our Most Dangerous Stocks (-3.6%) outperformed the S&P 500 (-1.4%) last month.
Danger Zone: Proofpoint Inc. (PFPT)
As hacks or data breaches seem to occur almost daily, the cyber security sector is receiving significant attention across the globe. When we focus on fundamentals and cut through the “sector theme” noise, we find some weak links in the cyber security industry. This week’s Danger Zone is one of those weak links.