New Exec Comp Plan Means It’s Time to Short this Stock
Bold is one way to describe the new exec comp plan. We would call it foolhardy.
Sam McBride
Sam McBride
The Market Doesn’t Appreciate This Tech Company’s Growth
Strong profit growth and a cheap valuation earn this stock a spot in January’s Most Attractive Stocks List and make it this week’s Long Idea.
Sam McBride
Why Suitors Are Leaving Twitter at the Altar – Danger Zone
Today’s news that Alphabet, Apple, and Disney are unlikely to bid for Twitter should come as no surprise. We think these companies (and many investors) are doing the same work we have done and simply cannot stomach paying anywhere close to Twitter’s current price.
Kyle Guske II, Senior Investment Analyst, MBA
The Fed Is Irrelevant: Low Interest Rates Are the New Normal
It’s time to consider a new paradigm for interest rates – a paradigm where treasury rates remain ultra low and riskier investments are priced by a decentralized market instead of a central bank.
Sam McBride
Alphabet Should Pay No More Than $1.1 Billion For Twitter
The bottom line is that there is a limit for how much Alphabet should pay for TWTR in order for the deal to be economically profitable. Even in the most optimistic scenario for TWTR’s future cash flows, Alphabet should pay no more than $1.1 billion, or $1.55/share, for Twitter.
Kyle Guske II, Senior Investment Analyst, MBA
Market Outlook For 2016
I think we are seeing the start of that process in late 2015 and early 2016. The combination of a slowdown in China, falling energy prices, and the end of zero interest rate policy from the Fed have put markets and the global economy in an interesting state of transition.
Sam McBride
Expedia’s Acquisitions Are Destroying Shareholder Value
After greatly outpacing the gains of the market over the past two years, we believe Expedia Inc. (EXPE) could be the next momentum stock to see its run end. A mix of overvaluation and destruction of shareholder value lead Expedia into the Danger Zone this week.
Kyle Guske II, Senior Investment Analyst, MBA
Survive the Market Storm With This Telecom Stock
Telecom and wireless operators are often cited as following the same path as traditional television providers, e.g. Comcast (CMCSA) and Time Warner Cable (TWC), which many believe are being replaced by newer, streaming providers like Netflix (NFLX), Amazon (AMZN), or Google’s (GOOGL) YouTube. This negative view has created an investing opportunity in one of the best companies the telecom industry has to offer.
Kyle Guske II, Senior Investment Analyst, MBA
No Hashtag Needed: Twitter’s Issues Worsen
Twitter went public in late 2013 touting excellent customer growth, equally impressive revenue growth, and the potential to be the “next big thing.” The stock has much farther to fall and earns a place in the Danger Zone this week.
Kyle Guske II, Senior Investment Analyst, MBA
This Stock Has One of the Highest ROICs in Our Coverage Universe
This week's stock pick of the week has one of the highest returns on invested capital (ROIC) in our model, and its recent guidance update and cheap valuation indicates that now might be the perfect entry point.
Andre Rouillard
Danger Zone: AOL (AOL)
AOL is not executing well in its reinvention as a digital media company and can't hope to fulfill the growth expectation implied by its valuation.
David Trainer, Founder & CEO
Outstanding Employee Stock Options – Valuation Adjustment
Without careful footnotes research, investors would never know the amount of employee stock options that decrease the amount of future cash flow available to shareholders by diluting the value of existing shares.
David Trainer, Founder & CEO
Excess Cash – Invested Capital Adjustment
Most companies hold some cash—or cash equivalents in the form of investments—above this required amount. Companies hold excess cash in order to cushion against economic downturns, prepare for acquisitions, or any number of other reasons. Sometimes, past profits pile up on balance sheets and are a form of excess cash. Excess cash is not needed for the operations of a company. It is removed from our calculation of invested capital.
David Trainer, Founder & CEO
Danger Zone 5/13/2013: Apple Inc. (AAPL)
Too many investors are looking at AAPL through the rear view mirror and assume that its sky-high profits and return on invested capital (ROIC) are sustainable. As I detail in my CNBC interview, Apple is not cheap and investors should not underestimate the impact of losing Steve Jobs.
David Trainer, Founder & CEO
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.
David Trainer, Founder & CEO
Risk Gets Lighter, Opportunity Gets Bigger for Weight Watchers
One of the best “win-win” combinations in today’s world is Weight Watcher International’s (WTW) stock.
David Trainer, Founder & CEO
Make Money By Losing Weight: Buy WTW
One of the best “win-win” combinations in today’s world is Weight Watcher International’s (WTW) stock.
David Trainer, Founder & CEO
Best and Worst Funds: Information Technology Sector
Information Technology is my top-ranked sector. As detailed here, only it and the Consumer Staples sector get my Attractive rating. Sector ratings, like fund ratings, are based on aggregation of
David Trainer, Founder & CEO
Don’t Fall For the Market Head-fake Today
The market decline experienced thus far is closer to its beginning rather then its end. Today’s refreshing market rise is likely just a flash in the pan.
The market needs to go down again before it can sustain any future rise.
David Trainer, Founder & CEO
Tech Sector ETF Rankings for 3Q11
ProShares Ultra Semiconductors (USD) is our top pick among the 25 ETFs we analyzed for our 3Q11 update on the “Best & Worst Tech Sector ETFs”.
David Trainer, Founder & CEO