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.

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Open Letter to Larry Ellison: How To Boost Oracle’s Value By $65 Billion


Thesis: Management can boost the market value of ORCL in the amounts provided by aligning the firm’s strategy and performance compensation with real cash flows or what we call return on invested capital.

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Danger Zone: Pure Storage (PSTG)


This week’s Danger Zone hones in on another IPO from 2015 that may have been one of the last to capitalize on the easy money in the market. Post IPO, we believe it won’t take long for investors to realize this company is bleeding cash, has no profits, and faces stiff competition moving forward.

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Danger Zone: Qlik Technologies (QLIK)


Despite deteriorating margins, lack of competitive advantage, and a sky-high valuation, Qlik Technologies (QLIK: $31/share) is up nearly 33% over the past two years and finds itself in the Danger Zone this week.

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Danger Zone: ServiceNow (NOW)


Just when we think the market is becoming more rational and beginning to focus on fundamentals again we find a stock that proves that idea wrong. Once again, we’ve identified a business that fails to generate profits, uses “adjusted” metrics as “better representations of business”, and who’s stock price is up over 200% since late 2012. ServiceNow (NOW) is in the Danger Zone this week.

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4Q15 Style Ratings for ETFs & Mutual Funds


At the beginning of the fourth quarter of 2015, only the Large Cap Value and Large Cap Blend styles earn an Attractive-or-better rating.

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Danger Zone: Marketo (MKTO)


This week we’ve identified another highflying cloud company that exhibits many of the problematic traits we saw in DWRE and SPLK. Revenue growth can only support a stock for so long and this week’s Danger Zone stock, Marketo (MKTO) has plenty of room to fall.

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The Best and Worst of the All Cap Growth Style

The All Cap Growth style ranks sixth out of the 12 fund styles as detailed in our 3Q15 Style Ratings for ETFs and Mutual Funds report. It gets our Neutral rating

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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.

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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.

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Barron’s Says New Constructs Provides The Best Accounting Analysis


Barron’s featured New Constructs for the eighth time this past weekend.

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All Cap Growth Style

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The All Cap Growth style ranks fourth out of the twelve fund styles as detailed in my Style Rankings for ETFs and Mutual Funds report.

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How To Find the Best Style ETFs


Finding the best ETFs is an increasingly difficult task in a world with so many to choose from.

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Investment Style Rankings For ETFs & Mutual Funds


No fund style earns better than my Neutral rating going into 2Q14.

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Danger Zone: Workday (WDAY)


Momentum was the only thing supporting WDAY’s stock, and now that the momentum is gone, look out below.

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Information Technology Sector


The Information Technology sector ranks third out of the ten sectors as detailed in my Sector Rankings for ETFs and Mutual Funds report.

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Large Cap Blend Style


The Large Cap Blend style ranks second out of the twelve fund styles as detailed in my Style Rankings for ETFs and Mutual Funds report. It gets my Neutral rating, which is based on aggregation of ratings of 35 ETFs and 886 mutual funds in the Large Cap Blend style as of January 27, 2014.

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Danger Zone 10/21/13: Tangoe (TNGO)

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TNGO checks all the marks of a Wall Street rollup scheme. Beating earnings estimates by a penny for share every quarter? Check. Constant acquisitions to keep the top line growing? Check. Shady management rewarding itself with massive stock options? Check.

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Unconsolidated Subsidiary Assets – Valuation Adjustment


Investors who ignore unconsolidated subsidiary assets are not getting a true picture of the cash available to be returned to shareholders. By adding unconsolidated subsidiary assets one can better understand the value of the stock to shareholders. Diligence pays.

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Non-Operating Unconsolidated Subsidiaries—Invested Capital Adjustment


This report is one of a series on the adjustments we make to convert GAAP data to economic earnings. This report focuses on an adjustment we make to convert the reported balance sheet assets into invested capital.

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