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Utility Sector: Check The Ingredients Before Buying

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?
by David Trainer, Founder & CEO
New Constructs
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Sell Starbucks (SBUX) – Still A Bad Stock

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.
by David Trainer, Founder & CEO
New Constructs
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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.
by David Trainer, Founder & CEO