New Constructs
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Mayo Is Right About Citigroup

A large write-down of its deferred tax assets could be devastating for Citi--over 30% of its total book value is comprised of net deferred tax assets. Our detailed analysis of the Notes to the Financial Statements also found these RED FLAGS : 1. Over $7bn in off-balance sheet debt 2. $2.2bn in under-funded Pension liabilities 3. Over $10bn in Asset write-offs
by David Trainer, Founder & CEO
New Constructs
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JDS Uniphase Cp (JDSU) — free report for Ask Matt, Dangerous Rating

RED FLAG: Our analy­sis of the Finan­cial Foot­notes reveals: the com­pany has writ­ten off over $60bn in assets over the last twelve years. That is a big num­ber com­pared to the company’s mar­ket cap of roughly $2.2bn and its net assets of about $1.3bn. This results in economic earnings of -$5,346mm compared to Net Income of -$866mm during the last fiscal year. For details on what causes the dif­fer­ence between Eco­nomic Ver­sus Account­ing Prof­its, see Appen­dix 3 on page 10 of our free report on JDSU.
by David Trainer, Founder & CEO
New Constructs
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NYSE – Why it’s on the Most Dangerous List

There are two primary reasons a stock gets on our Most Dangerous List: 1. Misleading earnings: reported GAAP earnings are positive and rising while economic earnings are negative and declining 2. Expensive valuation: future cash flow expectations embedded in the current price are unusually high especially compared to historical performance. Free copy of our report on NYX is in the Free Archive on www.newconstructs.com. Or just click here: NYX Company Valuation Report.
by David Trainer, Founder & CEO