A Turnaround Years in the Making


This week’s hot stock has almost been written off by many market pundits. As commonly happens, media coverage tends to overreact to bad news, and those reactions can begin to drown out any positive news.

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What We’re Reading This Morning — October 8, 2014

Casual businessman working in office, sitting at desk.

Can Satya Nadella reboot an empire?

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What We’re Reading This Morning — September 15, 2014


Why have market dips been so shallow of late? (Plus a Barron’s feature)

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What We’re Reading This Morning — September 10, 2014


What is Microsoft trying to buy for $2 billion?

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Do Microsoft Bulls Have A Convincing Case?


MSFT currently earns our Neutral rating, but if new CEO Satya Nadella can halt the company’s declining return on invested capital (ROIC), the stock’s valuation is cheap enough to make it intriguing.

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Danger Zone 9/30/13: Zynga (ZNGA)

The stock has been beat up since its much-hyped IPO in 2011, but even after losing 61% of its value the stock is still too expensive. ZNGA is competing in an immature market where the barriers to entry are almost nonexistent and brand loyalty is a foreign concept.

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Rating Breakdown: Best & Worst ETFs & Mutual Funds by Style


This report identifies the “best” ETFs and mutual funds based on the quality of their holdings and their costs. As detailed in “Low-Cost Funds Dupe Investors”, there are few funds that have both good holdings and low costs. While there are lots of cheap funds, there are very few with high-quality holdings.

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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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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.

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How To Avoid the Worst Style ETFs


Picking from the multitude of style ETFs is a daunting task. We are here to make it simpler and smarter.

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Fox TV Interview: How To Make Money In This Market

Yesterday, on Fox Business’s After The Bell, I shared my market outlook and strategy for making money in the current market. Here is the interview.

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Best & Worst Style ETFs & Mutual Funds


The best ETFs and mutual funds have high-quality holdings and low costs. As detailed in “A cheap fund is not always a good fund”, there are few funds that have both good holdings and low costs. While there are lots of cheap funds, there are very few with high-quality holdings.

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Roadmap to the Best & Worst ETF and Mutual Fund Styles


None of the fund styles earn a rating better than Neutral. The primary driver behind the Neutral-or-worse ratings is poor portfolio management. My style ratings are based on the aggregation of my fund ratings for every ETF and mutual fund in each style. Investors looking for style funds that hold high quality stocks should focus…

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Microsoft (MSFT): Very Attractive Rating — for Ask Matt Readers

MSFT gets my best rating because the company’s ROIC, at 72%, ranks 8th in the S&P 500 while its stock price (~$31.52/share) implies the company’s profits will permanently decline by about 20%. High profitability and low valuation create excellent risk/reward in a stock. Here is my free report on MSFT.

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Flaws In Traditional Fund Research Should Not Be Tolerated


Investors deserve truly independent research on funds. I show they are not getting it from Morningstar.

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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.

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Lorillard’s Profits Require No Smoke and Mirrors

Figure 1_Lorillard

I am not a smoker or tobacco user, and I do not like to be around smokers. However, that prejudice does not blind me from the fact that Lorillard, Inc. (LO) is a “very attractive” stock. I recommend investors buy it as well as the following ETFs because of their large allocations to LO and their attractive-or-better investment ratings…

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