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Danger Zone

October 27, 20140Comments

Danger Zone: MarineMax (HZO)

While MarineMax's stock suffered along with the company’s earnings during the financial crisis, it rebounded far too high on the back of overstated earnings. The only thing growing as fast as the artificially inflated earnings is the company’s debt.

by David Trainer, Founder & CEO

October 13, 20141Comments

Danger Zone: Sierra Wireless (SWIR)

While this stock has been much-hyped by the Motley Fool, Sierra Wireless has been unable to grow profits or earn positive returns on capital over any meaningful amount of time and the stock’s valuation already reflects alarmingly high expectations for future profit growth.

by David Trainer, Founder & CEO

October 7, 20140Comments

Danger Zone: Bob Evans Farms (BOBE)

A lesson in a company ready to implode, Bob Evans’ profits and revenue have been in decline since 2010, and the company is running out of cash.

by David Trainer, Founder & CEO

October 6, 20140Comments

Danger Zone: 10/6/14

This stock, which makes our Most Dangerous list for October, is down 25% so far in 2014 and has more room to fall.

by David Trainer, Founder & CEO

September 29, 20140Comments

Danger Zone: 9/29/14

This week's Danger Zone company — a trade school — is already down 30% in 2014, and is likely to drop another 50%.

by David Trainer, Founder & CEO

September 22, 20140Comments

Danger Zone: 9/22/14

This company's costly acquisitions have boosted revenues and income, but are causing a cash flow black hole.

by David Trainer, Founder & CEO

September 15, 20140Comments

Danger Zone: 9/15/14

The company in the Danger Zone this week has impressive revenue, but declining cash flow over that same timeframe.

by David Trainer, Founder & CEO

September 8, 20140Comments

Danger Zone 9/8/14: How to Spot a Company Ready to Implode

Dwindling cash reserves and increased competition are only the surface problems for this company. Throw in turmoil in the boardroom and we have a recipe for disaster.

by Andre Rouillard

August 4, 20140Comments

Danger Zone 8/4/14

This week’s Danger Zone pick features a high growth company with a great deal of buzz but little opportunity for long-term profitability.

by David Trainer, Founder & CEO

July 14, 20140Comments

Investing in the Kitchen

Figure 1 compares 10 companies that make common kitchen products on the basis of return on invested capital (ROIC) and price to economic book value (PEBV).

by David Trainer, Founder & CEO

July 14, 20140Comments

Danger Zone 7/14/14

This week’s Danger Zone pick features a consumer goods company with inflated earnings growth and an unrealistic valuation. All New Constructs subscribers can download the full report here – after logging in at

by David Trainer, Founder & CEO

July 7, 20140Comments

Danger Zone 7/7/14

This week's Danger Zone pick can be downloaded from the New Constructs website

by David Trainer, Founder & CEO

July 7, 20140Comments

How are These 19th Century Companies Doing Today?

Trading stocks sometimes feels like a very modern phenomenon, so it’s easy to forget that some of the companies we’re investing in go back a century or more.

by David Trainer, Founder & CEO

September 24, 20130Comments

CNBC Interview: Confirming AAPL Thesis – Apple Is Still Rotten

Here's my latest CNBC interview on my Apple (AAPL) thesis, originally articulated in Danger Zone 5/13/2013: Apple Inc. (AAPL).

by David Trainer, Founder & CEO

July 22, 20130Comments

Danger Zone 7/22/13: EPIQ Systems (EPIQ)

EPIQ Systems (EPIQ) is in the Danger Zone this week. The legal technology solutions provider has misleadingly high reported earnings due to a funny accounting rule. Analysts and investors looking at reported earnings have assigned unreasonably high expectations to EPIQ.

by David Trainer, Founder & CEO

July 1, 20131Comments

Danger Zone 7/1/13: Callaway Golf (ELY)

ELY is priced for significant profit growth despite declining revenues, increased pressure from competitors, and limited growth potential in the golf equipment industry.

by David Trainer, Founder & CEO

June 4, 20132Comments

Wal-Mart: Still Offering Great Value

Wal-Mart’s stock has done well since we first opened a position in June 2011, but it is still significantly undervalued.

by David Trainer, Founder & CEO

June 3, 20130Comments

Danger Zone 6/3/2013: Perma-Bears and Bubble Alarmists

I am optimistic about the U.S. economy and I don’t believe we are in bubble. Too many investors and economists are looking at the economy the wrong way.

by David Trainer, Founder & CEO

January 28, 20130Comments

Danger Zone 1/28/2013: Rydex Series Fund: Utilities Fund (RYUTX)

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.

by David Trainer, Founder & CEO

January 21, 20131Comments

Danger Zone 1/21/2013: Carpenter Technology (CRS)

Carpenter Technology (CRS) makes it into the Danger Zone this week due to misleading acquisition accounting.

by David Trainer, Founder & CEO

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