Pension Plan Assumptions: How Companies Hide Liabilities and Overstate Earnings

Untitled

In this special report, we lay out the 10 companies with the most underfunded pensions along with the 10 companies using unrealistic expected return and discount rate assumptions.

Continue Reading →

How are These 19th Century Companies Doing Today?

5416212814_0f9862728e_m

Trading stocks sometimes feels like a very modern phenomenon, so it’s easy to forget that some of the companies we’re investing in go back a century or more.

Continue Reading →

Best & Worst ETFs & Mutual Funds: Materials Sector

BW_Final-4q14

The Materials sector ranks seventh out of the ten sectors as detailed in my Sector Rankings for ETFs and Mutual Funds report. It gets my Dangerous rating, which is based on aggregation of ratings of 10 ETFs and 15 mutual funds in the Materials sector as of October 10, 2013. Prior reports on the best & worst ETFs and mutual funds in every sector are here.

Continue Reading →

Best & Worst ETFs and Mutual Funds: All-cap Value Style

Best & Worst blank

The All-cap Value style ranks sixth 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 2 ETFs and 271 mutual funds in the All-cap Value style as of May 2, 2013.

Continue Reading →

Should Directors Ignore Those One-Time Items?

I do not think so. The question, however, is not so much about what directors ignore. You cannot ignore something about which you are unaware.
The real issue is that most directors and investors are simply unaware of the many one-time items because they are buried deep in the annals of footnotes in annual reports or 10-K filings.

Continue Reading →

Red Flag Report: Hidden Expenses/Income: What You Don’t Know Can Cost You

dreamstimefree_3430_keepOutBuoyInSmallPond

Most investors are not aware that companies hide one-time and unusual charges and income inside normal, operating line items (e.g. “Cost of sales”) on their income statement. These hidden items can mislead investors by artificially decreasing/increasing GAAP earnings. We found 13,000+ one-time items buried in normal line items like “Cost of Sales” by studying the Footnotes of 10-K filings from 1998 thru 2/15/2011. This research revealed that companies have concealed over $41 billion in one-time items.

Continue Reading →