May 18, 20180Comments

Average Invested Capital: Explanation and Examples

In our calculation of ROIC, we use a time-weighted average invested capital, to most accurately capture the capital available to a business that can be used to generate NOPAT...

by Kyle Guske II

March 5, 20180Comments

This David Stands Little Chance Against Industry Goliaths

As the market matures and competition firmly establishes itself, this firm’s lack of resources and highly negative margins create an uphill battle.

by Kyle Guske II

January 26, 20181Comments

AI Has a Big (Data) Problem (3 of 5)

We are awash in an ocean of data that grows bigger by the second. And it’s a complete and utter mess.

by Sam McBride

January 17, 20184Comments

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.

by Sam McBride

December 4, 20170Comments

No Recipe for Success: Low Margins in a Competitive Industry

This stock’s valuation has not adjusted to reflect new competitive pressures or the rapidly deteriorating fundamentals.

by Kyle Guske II

September 14, 20170Comments

Alpha-generating Forensic Accounting Examples

New Constructs’ proprietary forensic accounting research empowers investors to identify alpha-generating investment ideas more efficiently than traditional manual approaches....

by Kyle Guske II

October 6, 20160Comments

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...

by Kyle Guske II

June 13, 20160Comments

Microsoft Vastly Overpays For LinkedIn

Our models show that, even with the most optimistic forecasts, over $20 billion, or $2.60 per MSFT share, of the $26.2 billion purchase is an overpayment and a direct...

by Kyle Guske II

April 11, 20160Comments

Danger Zone: Blackbaud Inc. (BLKB)

Our call on Valeant (VRX) showed how dangerous it is to trust non-GAAP earnings because they cannot be used to cover true cash costs. For these reasons and more, Blackbaud...

by Kyle Guske II

February 18, 20160Comments

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...

by David Trainer

December 14, 20151Comments

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...

by Kyle Guske II

October 12, 20152Comments

Danger Zone: Proofpoint Inc. (PFPT)

As hacks or data breaches seem to occur almost daily, the cyber security sector is receiving significant attention across the globe. When we focus on fundamentals and cut...

by Kyle Guske II

October 5, 20150Comments

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...

by Kyle Guske II

July 14, 20150Comments

3Q15 Style Ratings for ETFs & Mutual Funds

At the beginning of the third quarter of 2015, only the Large Cap Value and Large Cap Blend styles earn an Attractive-or-better rating. Our style ratings are based on the...

by Max Lee

June 19, 20153Comments

Get This Cash Cow at a Discount

Strong business fundamentals and low valuations are key ingredients in the overall evaluation of investments. This week’s stock pick of the week brings high profitability and...

by Kyle Guske II

February 10, 20150Comments

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...

by Kyle Guske II

September 30, 20130Comments

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...

by David Trainer

July 16, 20130Comments

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...

by David Trainer

May 24, 20130Comments

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.

by David Trainer

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