Our Company Valuation models are very sophisticated discounted cash flow and earnings quality models.
An enormous amount of works goes into every model. I wish I could offer a short-cut (beyond our ratings and reports) for understanding our models.
Always flattered when a journalist, especially one as famous and respected at Mr. Taibbi, references my work. His article “Bank of America In Trouble?” incorporated the meat of my “Raising Fees Is A Desperate Measure: Sell BAC” article.
Fox Business News features my focus on the Real Earnings Season that is overlooked by most everyone in the market.
The Portfolio Management Rating of a fund is based on the aggregated ratings of the securities it holds as well as its overall Asset Allocation. When analyzing equity funds, we use New Constructs’ stock ratings, which are regularly featured as among the best by Barron’s over the past three years.
Here is a free copy of our report on AAPL for Ask Matt readers.
AAPL gets our “Very Attractive” rating because its economic earnings are positive and rising, it has one of the highest returns on invested capital (ROIC) in the world. At the same time, it’s stock price reflects very low expectations for future earnings growth.
High dividend yields are NOT enough to warrant investing in the utilities sector.
Too many investors put their hard-earned money in utility stocks with the assumption that relatively high-yielding dividends from stable business make a good investment.
The real question that investors in any equity security must ask is: does my expected return from a stock justify the risk of investing in it?
Similar to my prior interviews on SBUX, I found it easy to make the bear case for a stock that is as expensive as Starbucks (SBUX). As my regular readers know, when I say “expensive”, I back that up with details such as: to justify its $40 stock price (closing price from prior day), SBUX had to grow profits at 10% compounded annually for more than 25 years.
In addition to my stock-brawl interview on Thursday (9/29/11), I have commented to the media on Starbucks (SBUX) many times. Below is a list (with links) to my past opinions/comments on SBUX.
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.
Great interview this am with Dagan McDowell and Ashley Webster about my recent article: “The Fed’s Bazooka: Revealed As Final Policy Firepower in Jackson Hole”.
No more Mr. Nice Guy. It is time for Mr. Bernanke to break out the big guns in Jackson Hole this Friday.