April 7, 20210Comments

Ready to Soar

Despite underperforming the market for several years, this long-time Long Idea has all the tools for a successful turnaround and holds significant upside potential.

by Matt Shuler, Investment Analyst II

June 18, 20182Comments

Worst Offenders: Expected Return On Plan Assets

This report red flags the firms with the most underfunded pensions and the most aggressive assumptions for returns they expect to earn on the pension assets.

by Sam McBride

June 4, 20180Comments

Danger Zone: Pension Accounting: Expected Returns on Plan Assets

Pension underfunding remains dangerously high for many firms, and some companies use unusual assumptions for expected return on plan assets to mislead investors.

by Sam McBride

July 12, 20170Comments

See Us On CNBC Discussing Airline Stocks @ 3:40ET Today

Tune into CNBC on Wednesday, July 12 at 3:40pm EST. New Constructs CEO, David Trainer, will discuss airline stock’s valuation and the implied market expectations across the industry.

by Kyle Guske II, Senior Investment Analyst, MBA

November 18, 20150Comments

Long Idea: Allegiant Travel Company (ALGT)

The search for quality stocks only gets harder as companies use a growing array of tricks to deceive investors. Our research has always focused on cutting through the noise. We

by Blaine Skaggs

April 29, 20130Comments

S&P Says Ratings Were Never Meant To Be Reliable

S&P admits its ratings were never supposed to be reliable. How's that for proof you need to do your own diligence?

by David Trainer, Founder & CEO

March 26, 20130Comments

How To Avoid the Worst Style ETFs: March 2013

Picking from the multitude of style ETFs is a daunting task. We are here to make it simpler and smarter.

by David Trainer, Founder & CEO

September 18, 20120Comments

Don’t Trust This Utility’s Dividend

Smart investors consider more than just the dividend of a stock. They also consider the principal risk. If the principal risk is greater than the dividend yield then the dividend is of no real value. I see the principal risk of this stock at more than 15% with a fair value closer to $50 – after adjusting for the pension accounting shenanigans.

by David Trainer, Founder & CEO

July 13, 20120Comments

Goldman’s Sell Rating on DAL Follows My Short Call

Yesterday, Goldman Sach's initiated on Delta Airlines (DAL) with a Sell Rating. This stock call comes two months after my note to clients recommending shorting DAL.

by David Trainer, Founder & CEO

June 26, 20120Comments

How To Survive the Euro Crisis

As I wrote in “Don’t Be Fooled: Get Short Now”, the euro is not that different from Enron, WorldCom or the Madoff fund. All of these organizations were able to pretend they were profitable or solvent long after they were insolvent. Now markets are finally acknowledging the intractability of the Euro debacle.

by David Trainer, Founder & CEO

June 8, 20120Comments

Top Stock Picks & Shorts: Moneylife Radio Interview w/ Chuck Jaffe

Listen in on my 15 minute interview describing the rigorous diligence New Constructs applies to every rating on the stocks, ETFs and mutual funds we cover.

by David Trainer, Founder & CEO

June 5, 20120Comments

Why is S&P Raising Its Outlook on Delta (DAL)?

After S&P’s recent upgrade to its outlook on Delta Airlines [s: DAL], I cannot help but to wonder how they do their analysis.

by David Trainer, Founder & CEO

May 26, 20120Comments

Barron’s Features My Analysis on DAL’s Abnormal Pension Accounting

In his weekly column, The Trader, Vito Racanelli features my in-depth work on the funky accounting Delta Airlines' (DAL) uses to mask $26 billion on off-balance sheet liabilities. Mr. Racanelli agrees

by David Trainer, Founder & CEO

May 25, 20120Comments

“S&P: Delta could be in line for upgrade” – Are they kidding?

I do not think S&P's analysts are aware of Delta's staggering $22.3 billion in off-balance sheet liabilities, which include $14.1 billion in underfunded pensions and $8.2 in operating leases.

by David Trainer, Founder & CEO

May 18, 20121Comments

Bail Out of DAL Before the Stock Crashes

I recommend investors avoid Delta Airlines (DAL). I think the stock could see significant downward pressure as more investors realize how the company is propping up its earnings with relatively aggressive accounting for its pension and postretirement plan (“pensions”), which are already seriously underfunded.

by David Trainer, Founder & CEO