July 19, 20160Comments

Why Companies Overpay For Acquisitions

Overpriced acquisitions are far from a new phenomenon, but they’ve been especially prevalent in recent months. As a result, we’ve gathered some ideas about the various reasons companies ignore the evidence and continue to overpay for acquisitions.

by Sam McBride

June 2, 20161Comments

Salesforce.com Investors Lose Big In Demandware Acquisition

Under even the most optimistic integration scenarios, we believe that Salesforce.com’s proposed acquisition of Demandware for $75/share or $2.85 billion represents an unacceptable transfer of wealth from CRM to DWRE shareholders.

by Kyle Guske II, Senior Investment Analyst, MBA

April 18, 20160Comments

Danger Zone: Cornerstone OnDemand (CSOD)

Companies with long histories of profit losses often attempt to sell investors on their plans to “reach scale.” But, what happens when a company reaches scale and profits remain elusive? Profitless since going public, Cornerstone OnDemand (CSOD) lands in the Danger Zone this week.

by Kyle Guske II, Senior Investment Analyst, MBA

March 17, 20160Comments

#1 Ranked Stock Picker By SumZero

We are proud to announce that New Constructs has been ranked the #1 LTM Analyst per SumZero Rankings.

by Kyle Guske II, Senior Investment Analyst, MBA

February 19, 20160Comments

Danger Zone Performance Worth Noting

The market awards the most value to the companies that give the most back. It punishes those that do not create value. Figure 1 shows how well our Danger Zone picks have done.

by Kyle Guske II, Senior Investment Analyst, MBA

February 15, 20162Comments

Danger Zone: Post Holdings (POST)

This week’s Danger Zone focuses on another food products business, similar to recent Danger Zone stocks WhiteWave (WWAV) and Snyder's-Lance (LNCE). Large destruction of shareholder value, skyrocketing debt levels, and insufficient returns on invested capital (ROIC) play a part in Post Holdings (POST: $67/share) landing in the Danger Zone this week.

by Kyle Guske II, Senior Investment Analyst, MBA

January 12, 20160Comments

Finding Safe Investments In A Dangerous Market Webinar

While trading fads come and go, good fundamental research is required to fulfill your fiduciary duties to your clients and yourself. Without it, realize it or not, you take significant risk that the numbers you use to make a decision are not correct.

by Kyle Guske II, Senior Investment Analyst, MBA

November 17, 20151Comments

The Dangers of Non-GAAP Earnings

It’s no secret that non-GAAP earnings allow management to directly manipulate their performance metrics. Investors must look past non-GAAP metrics to protect their portfolios. While non-GAAP tricks may provide some short-term boosts to stock prices, eventually reality sets in and the true economics of the business rule the day.

by Kyle Guske II, Senior Investment Analyst, MBA

October 1, 20150Comments

5 Sinking Stocks To Avoid In The Market Storm

Markets are getting restless. Valuations are stretched, the global economy is shaky, and after six years of a bull market investors are taking every excuse to sell. Now, more than ever, it’s important to own quality businesses at fair valuations.

by Sam McBride

September 27, 20150Comments

“What Demandware Lacks Are Profits” – Barron’s

This past weekend, Barron’s magazine featured our research for the sixth time in 2015 and 15th time since 2014.

by Kyle Guske II, Senior Investment Analyst, MBA

September 25, 20150Comments

Finding Safe Harbors In Market Storms Webinar 08/24

How do you navigate the numerous sources of investment advice? How do you determine who is telling the truth and who is not? The answers to these important questions are key to successful investing.

by Kyle Guske II, Senior Investment Analyst, MBA

August 31, 20150Comments

Is Your Portfolio Safe When the Momentum Stops?

What comes up must come down right? As the seven-year bull market finds its strength tested the past two weeks, many momentum stocks, which have seen their share prices soar, found their valuations crashing back to earth rather abruptly.

by Kyle Guske II, Senior Investment Analyst, MBA

July 7, 20153Comments

Ignore the Hype: Splunk Remains Overvalued

In early 2012, Splunk Inc. burst onto the scene with one of the biggest IPOs of the year. Since then, the stock price has ridden the hype and is up more than 320%. This price increase should raise serious concerns for astute investors.

by Max Lee

June 26, 20150Comments

David Trainer Discusses the Problems Facing Demandware

CEO David Trainer sat down with Chuck Jaffe of Money Life and MarketWatch.com to talk about our Danger Zone pick this past week: Demandware (DWRE).

by Kyle Guske II, Senior Investment Analyst, MBA

June 23, 20150Comments

High Revenue Growth Masks Problems at Demandware

Demandware IPO’d in 2012 based on plans to create shareholder value by providing e-commerce platforms for retailers and brands worldwide. So far, the plan is not working as the company’s profits have declined. Paradoxically, the stock price has climbed over 140% since its IPO. The stock is dangerously overvalued and earns a place in the Danger Zone this week.

by Kyle Guske II, Senior Investment Analyst, MBA